ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are four main factors of production. Land, Labour, and Capital are the main factors of production. The entrepreneur is the one that combines these factors in the correct proportion and mobilizes them.

Detailed explanation-2: -The fourth factor of production is entrepreneurship. An entrepreneur is a person who combines the other factors of production-land, labor, and capital-to earn a profit.

Detailed explanation-3: -Entrepreneurship is the undertaking of new business ventures that may eventually become profitable companies. Some economists identify entrepreneurship as a factor of production because it can increase the productive efficiency of a firm.

Detailed explanation-4: -Factors of production is an economic term that describes the inputs used in the production of goods or services to make an economic profit. These include any resource needed for the creation of a good or service. The factors of production are land, labor, capital, and entrepreneurship.

Detailed explanation-5: -One could argue that land is most important, since all physical products originate from the resources it provides. However, professional services and software are increasingly important in the modern economy. Therefore, you could argue that labor is the most crucial factor of production.