ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are generally four factors of production labour, capital, land and entrepreneurship. Labour gets wages and salaries, capital gets interest, land gets rent and entrepreneurship gets profit as their remuneration.

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: -Factors of production have various payments. For instance, the income for land resources is known as rent. Secondly, an entrepreneur earns profit, capital resource owner earns interest, and finally, labor payment is wages.

Detailed explanation-4: -Land is generally considered one of the most important factors of production. Certain industries rely on land more than others.

Detailed explanation-5: -The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.