Quick Answer: Which One Of The Following Is Not A Factor Of Production?

What are the 6 factors of production?

Factors of production are the inputs needed for the creation of a good or service.

The factors of production include land, labor, entrepreneurship, and capital..

What are the reward for factors of production?

When factors are used they earn a reward called a factor ‘income’. Factor incomes are: rent, wages, interest and profit. In basic economic theory, the more scarce and essential the factor the greater the reward.

Which one of the following is an example of capital as a factor of production?

Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship. Common examples of capital include hammers, tractors, assembly belts, computers, trucks, and railroads.

What are the factors of production class 9?

There are four factors of production i.e. land, labour, physical capital and human capital. The first requirement for production is land. Land as a production factor also includes other natural resources like water, forests and minerals found in the earth’s crust.

Who owns the factors of production?

In a simplified model of an economy, known as a circular flow diagram, households own the factors of production. They sell or lend these factors to firms, which produce goods and services that households buy. Under this theoretical model, firms do not own the factors of production.

What is the most important factor of production?

Human capital is the most important factor of production because it puts together land, labour and physical Capital and produce an output either to use for self consumption or to sell in the market.

Which of the following is a factor of production?

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.

What are the 5 factors of production?

Factors of Production Definition The factors of production are land, labor, capital, and entrepreneurship.

What are the four factors of production give examples?

The four main factors of production are land, or the physical space and natural resources, labor, or the workers, capital, or the money and equipment, and entrepreneurship, or the ideas and drive, which are used together to make a successful attempt at selling a product or service according to traditional economic …

What is the aim of production?

The aim of production is to produce the goods and services that we want. There are four factors of production: (i) Land. The first requirement of production is land, and other natural resources such as water, forests, minerals.

Which factor of production is a doctor?

The terms labor represents human resources people use to produce goods and services. These skills required may have been developed through specialized training or developed on the job. Example: Teachers, doctors, nurses, lawyers, engineers, architects.

Which is not a factor of production?

Money is not considered as a factor of production. Money is medium of exchange and hence it cannot help to increase the productivity of an economy like other factors of production, thus the factors of production are Land, Labour, Capital and Entrepreneurship.

Which of the following are factors of production capital and land?

There are four categories of resources, or factors of production:Natural resources (land)Labor (human capital)Capital (machinery, factories, equipment)Entrepreneurship.

What are the 4 factors of production quizlet?

1. Define the four factors of production—labour, capital, natural resources and entrepreneur.