INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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inputs.
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consumer goods.
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outputs.
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conversion processes.
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Detailed explanation-1: -Inputs are any resources used to create goods and services. Examples of inputs include labor (workers’ time), fuel, materials, buildings, and equipment.
Detailed explanation-2: -Factors of production are resources a company uses to generate a profit by producing goods and services. Land, labor, capital and entrepreneurship are the four categories of factors of production.
Detailed explanation-3: -Productivity refers to the amount of goods and services produced from each unit of labor input.
Detailed explanation-4: -Labour earns wages and salaries, capital earns interest, natural resources such as land earns rent, and entrepreneurship earns a profit.
Detailed explanation-5: -Production – The creation or making of goods and services. The transformation of resources into goods and services. Productivity – The relationship between the output of goods or services and the input of resources.