GK
BUSINESS ECONOMICS
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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: -Land, Labour, Capital and Enterprise are the four factors of production which are required for running a firm or a company profitably.
Detailed explanation-3: -Capital, or capital goods, as a factor of production, refers to the money that is used to purchase items that are used to produce goods and services. For example, a company that purchases a factory to produce goods or a truck that is purchased to do construction are considered to be capital goods.