ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Many economists also identify a fourth factor of production: technology. Technology refers not just to robots and computers but to the entire body of knowledge or science that informs or improves a production process. And finally, some economists also include entrepreneurship as a factor of production.

Detailed explanation-2: -The factors of production are the inputs used to produce a good or service in order to produce income. Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.

Detailed explanation-3: -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. Capital differs based on the worker and the type of work being done.

Detailed explanation-4: -Land as a factor of production. As a factor of production, land can take on various forms-from raw property to commercial real estate. Labor as a factor of production. Capital as a factor of production. Entrepreneurship as a factor of production. 15-Feb-2021