ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans.

Detailed explanation-2: -Capital as a factor of production refers to capital goods, or man-made resources, such as tools and infrastructure, used in the production of a good or service.

Detailed explanation-3: -Expert-Verified Answer. The factors of production are land, labor, capital, and entrepreneurship.

Detailed explanation-4: -Labor as a factor of production refers to the effort that individuals exert when they produce a good or service. For example, an artist producing a painting or an author writing a book. Labor itself includes all types of labor performed for an economic reward, such as mental and physical exertion.

Detailed explanation-5: -In short run, capital is a fixed factor and not a variable factor because in short run factors like capital, machinery etc are held constant and variable factors like labour, power etc changes as per the level of output generated.