ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Detailed explanation-2: -Beginner. All goods and services are produced using productive resources (also known as factors of production). These resources are divided into four broad categories: natural (land), human (labor), capital and entrepreneurship.

Detailed explanation-3: -Updated: February 20, 2023. The factors of production are required to produce goods or services. They are also known as the inputs in a production process. They primarily include forms of labor, financial capital, entrepreneurism, and any natural resource.

Detailed explanation-4: -The productive factors are commonly classified into three groups: land, labour, and capital. The first represents resources whose supply is low in relation to demand and cannot be increased as the result of production. The income derived from the ownership of this factor is known as economic rent.

Detailed explanation-5: -Understanding productive resources, the resources required to produce goods and services that people want, is important to understanding the economic world around us. There are three kinds of productive resources: human, natural, and capital.