GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scarcity
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Choice
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Opportunity cost
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Natural resources
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Detailed explanation-1: -Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
Detailed explanation-2: -The economic significance of natural resources depends upon the magnitude of two basic variables: current flows of income and potential future flows of income. The first is largely a function of production costs and market demand, and the second of natural resource endowments and management planning.
Detailed explanation-3: -Land, Labour, Capital and Enterprise are the four factors of production which are required for running a firm or a company profitably.