Question

What are the four factors of production?

• A. Labour, transportation, excise duty and entrepreneurship
• B. Man power, transportation, excise duty and import
• C. Capital, transportation, excise duty and entrepreneurship
• D. Land, labour, capital, and entrepreneurship

Answer 1

Answer:

D. Land, labour, capital, and entrepreneurship

• The four factors of production, the essential inputs used to produce goods and services, are land, labor, capital, and entrepreneurship.

• Land: This includes all natural resources, such as land itself, water, minerals, and forests.

• Labor: This refers to the human effort, both physical and intellectual, required for production.

• Capital: This encompasses man-made resources used in production, like tools, equipment, machinery, and factories.

• Entrepreneurship: This is the innovative and organizational skill that combines the other three factors to produce goods and services, often involving risk-taking and the pursuit of profit.