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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The selection of inputs for making outputs
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The process of assembling the factors of production
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The conversion process that results in time utility
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The creation of goods and services from economic resources
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Detailed explanation-1: -Conventionally, the term production is defined as the process of creating, producing, or manufacturing goods and services using economic resources for financial gains. Adam Smith, also known as the Father of Economics, associated the production concept with the creation of material goods only.
Detailed explanation-2: -A production process is a method of using economic input or resources, like labor, capital equipment or land, to provide goods and services to consumers.
Detailed explanation-3: -Production is the process of combining various inputs, both material (such as metal, wood, glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output. Ideally this output will be a good or service which has value and contributes to the utility of individuals.
Detailed explanation-4: -Factors of production is an economic concept that refers to the inputs needed to produce goods and services. The factors are land, labor, capital, and entrepreneurship. The four factors consist of resources required to create a good or service, which is measured by a country’s gross domestic product (GDP).