Can You Explain The Factors Of Production In Economics?

5 Answers

adhuham rasheed Profile
adhuham rasheed answered
Factors of
production are the resources that we human used to produce goods and services. Economists
have long recognized these factors of production. These are land, labour, capital and entrepreneur.

 

Land refers to very thing in the universe that is not created by
human being.  It includes more then the
surface of the earth, air, sun light, forest, earth, water, and minerals etc…

 

Labour: - In economics the word labour means employees or workers who are
directly involved in the production process of goods and services. It also includes
workers both physical and mental.

 

Capital: - In economics the term “capital” is the
measure of the accumulated financial strength of an individual strength of an
individual firm both by fixed assets or current assets. In some of 19th
century books it says that capital is the amount of money needed to set up a business.

 

Entrepreneur: - Entrepreneur is the person who exercises
initiative by organizing a venture to take benefit of an opportunity and, as
the decision maker, decides what, how, whom, and how much of goods or services
will be produced. He or she supplies risk capital as a risk taker, monitors and
manage the business’ activities as a manager. Usually the entrepreneur is a
sole-proprietor, a partner, or the one who ones the majority of shares in an
incorporated venture.
Ugochi Profile
Ugochi answered
Land, Labor, and Capital
Anonymous Profile
Anonymous answered
The factors of production are Land, capital, Labour and Entrepreneur. In economics, Land is not just the ground we stand on but things that are provided by nature eg: Trees, animals, water etc.
Anonymous Profile
Anonymous answered
Yes,the factors of the production in the economic that are in the sequence wise.
(a)Land:-For the production of the product land is the first step in FOP.
(b)labour:-We need to do the business activities is called labour.
(c)Capital:-to carry out the daily transaction and to meet the short term liabilities.l
(d)Entrepreneurship:-inter dependent of all the FOP to carry on the business.

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Anonymous