ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is not considered as a factor of production. Money is medium of exchange and hence it cannot help to increase the productivity of an economy like other factors of production, thus the factors of production are Land, Labour, Capital and Entrepreneurship.

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: -Servicing is not a factor of a production process. The 4 factors of a production process includes: land, labour, capital and organization.

Detailed explanation-4: -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.

Detailed explanation-5: -Land is generally considered one of the most important factors of production. Certain industries rely on land more than others.