ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The factors of production are the inputs used to produce a good or service in order to produce income. Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.

Detailed explanation-2: -Four major factors of production are – entrepreneurship, labor, land, and capital. They form an integral part of inputs in this function. The production function helps the producers determine the maximum output that firms and businesses can achieve using the above four factors.

Detailed explanation-3: -Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.

Detailed explanation-4: -When economists refer to capital, they are referring to the assets-physical tools, plants, and equipment-that allow for increased work productivity. Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship.