ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is not considered as a factor of production. Money is medium of exchange and hence it cannot help to increase the productivity of an economy like other factors of production, thus the factors of production are Land, Labour, Capital and Entrepreneurship.

Detailed explanation-2: -Servicing is not a factor of a production process. The 4 factors of a production process includes: land, labour, capital and organization.

Detailed explanation-3: -In economics, capital typically refers to money. However, money is not a factor of production because it is not directly involved in producing a good or service. Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or to pay wages.

Detailed explanation-4: -Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Detailed explanation-5: -The four factors of production are land, labor, capital, and entrepreneurship. They are said to be the building blocks of the economy. Expenditure does not come under the four main factors of production.