The basic factors of production are land, labour, capital and______a)Resourcesb)Machineryc)Investmentd)EntrepreneurshipCorrect answer is option 'D'. Can you explain this answer?

Question

Answer

Factors of production is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. This include land, labour, capital and entrepreneurship.

Answer

Yes, the correct answer Is D because entrepreneurs invest in production and it is acts as a capital later which help in every face....

Answer

D

Answer

The basic factors of production are land, labour, capital and entrepreneurship.

1. Land

Land refers to all natural resources that are used in the production process. It includes not only the surface area of the earth but also everything found on or under it, such as minerals, water, forests, and wildlife. Land is a passive factor of production as it does not include any human effort or input. However, it plays a crucial role in providing the necessary resources for production.

2. Labour

Labour refers to the physical and mental effort exerted by individuals in the production process. It includes the skills, knowledge, and abilities of workers. Labour is an active factor of production as it involves human input and is essential for transforming raw materials into finished goods or providing services. The quantity and quality of labour available in an economy greatly influence its productive capacity.

3. Capital

Capital refers to the man-made resources used in the production process. It includes machinery, equipment, buildings, tools, and other physical assets. Capital is an intermediate factor of production as it is produced by using land, labour, and entrepreneurship. It enhances the productivity of labour and contributes to the overall output of goods and services. Capital can be either fixed (long-term assets) or working (short-term assets) and is essential for economic growth.

4. Entrepreneurship

Entrepreneurship refers to the ability and willingness to organize, manage, and take risks in order to create and run a business venture. Entrepreneurs combine the other factors of production and take the initiative to start new enterprises, innovate, and make decisions. They play a crucial role in driving economic growth, creating job opportunities, and introducing new products or services to the market. Entrepreneurship involves activities such as identifying opportunities, mobilizing resources, making strategic decisions, and assuming the risks associated with business ventures.

In conclusion, the basic factors of production are land, labour, capital, and entrepreneurship. These factors are essential for the production of goods and services in an economy. Each factor contributes in its own way to the overall production process and economic development.

Answer

D is correct answer Entrepreneurship..

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