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: -4 Key Resources-The four basic kinds of resources used to produce goods and services: land or natural resources, labor or human resources, capital, and entrepreneurship.

Detailed explanation-3: -Land is generally considered one of the most important factors of production. Certain industries rely on land more than others.

Detailed explanation-4: -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-5: -A factor of production is any resource (labor, capital, land, entrepreneurship) that is used by the firm in its production process. Households are the suppliers in the markets for the factors of production, and they have upward-sloping supply; firms are the buyers and have downward-sloping demand.