ECONOMICS (CBSE/UGC NET)

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

Detailed explanation-2: -Economists define four factors of production: land, labor, capital and entrepreneurship.

Detailed explanation-3: -Resources are also called factors of production because they are used as inputs in the production process of goods and services. Resources are called inputs because they are utilized in the initial phase of the production.

Detailed explanation-4: -Capital is a factor of production that has been produced for use in the production of other goods and services. Office buildings, machinery, and tools are examples of capital.

Detailed explanation-5: -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.