Question

Explain the factors responsible for production.

Answer 1

Following are the factors responsible for production:
(i) Land: It is free gift of nature and it is neither created nor destroyed.
(ii) Labour: It is a factor which helps in production. There are three types of labour - skilled, semi-skilled and unskilled.
(iii) Capital: It is a part which is invested. There are two types of capital namely physical and working capital.
(iv) Entrepreneurs: The person who is taking risk is known as entrepreneur. Without entrepreneur land, labour capital are useless.