explain the factors of production

Collectively, these inputs are called the factors of production. Explain the role of technology and entrepreneurs in the utilization of the economy’s factors of production. They are land and labour, as capital is created by the application of labour on land and an entrepreneur is the human resource who performs and controls the business. In the modern economy, economists classified these factors into two categories. They are the resources businesses use to create wealth. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. The factors of production are the building blocks of any economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Explain in words or using a graph. This episode of our podcast series, The Economic Lowdown, discusses the factors of production. To put it in different terms, the factors of production are the inputs needed for supply. Land is a passive factor whereas labour is an active factor of production. The productive factors are commonly classified into three groups: land, labour, and capital. The first represents resources whose supply is low in relation to demand and cannot be increased as the result of production. The factors of production can be used as … The factors of production are the names for the inputs needed to produce a good or service. Simply put, resources are the inputs used to produce outputs (goods and/or services). Factors of Production Definition. Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. There are four factors of production: land, labour, capital and entrepreneurship (also known as … Factors which are used to carry out the process of production are called factors of production. The factors of production are land, labor, capital, and entrepreneurship. The classical economists classified factors of production into four kinds namely land, labor, capital and organization . Actually, it is labour which in cooperation with land makes production possible. Factors of production are those agents which help in the production of various goods. While knowledge is as old as humankind, it is only recently that it has been recognized as a factor of production. The income derived from the ownership of this factor is known as economic rent. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. Create an account to start this course today Factors of Produc-on The scarce produc:ve resources of an economy can be placed into one of the four following headings. 1) LAND 2) LABOUR 3) CAPITAL 4) ENTERPRISE In general terms, Factors of Produc:on are the “stuff” used to make “things”. What are the factors of production? This implies that the factors of production should be used in combination, so that the production target can be achieved. Choices concerning what goods and services to produce are choices about an economy’s use of its factors of production , the resources available to it for the production of goods and services. In other words, they are the inputs that we use to produce goods and services so that we can make an economic profit.. We divide the factors of production into the following four categories: Land, Labor, Capital, and Enterprise. Explain the four factors of production All businesses, both for-profit and nonprofit, need resources in order to operate. There are five factors of production: land, labour, capital, entrepreneurship, and knowledge. The four factors are land, labour, capital and human enterprise. The production process of an organization can be efficient, if there is an optimal use of factors. 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