ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Land is always freely available.
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Labour is rewarded with profit.
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All natural resources are known asenterprise.
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Capital is produced by factors ofproduction.
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Detailed explanation-1: -Detailed Solution. The correct answer is The factor of production termed capital means the money required for production. Factors of production is an economic term that describes the inputs used in the production of goods or services.
Detailed explanation-2: -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-3: -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-4: -Land, Labour, Capital and Enterprise are the four factors of production which are required for running a firm or a company profitably.
Detailed explanation-5: -In contrast, many economists today consider “human capital” (skills and education) as the fourth factor of production, with entrepreneurship as a form of human capital. Yet others refer to intellectual capital.