Question

Land, labour, capital and entrepreneurship together are called _________.

• A. parts of production
• B. factors of production
• C. process of production
• D. features of production

Answer 1

Answer: (B)

factors of production

The factors of production refer to the inputs that are necessary for the production of goods and rendering of services. Land, labour, capital and entrepreneurship comprise the factors of production.

Land includes agricultural land, commercial land, natural oil and gas reservoirs, mines, etc.

Labour refers to the manpower.

Capital refers to the monetary funds of the enterprise.

Entrepreneurship refers to the management and ownership of the enterprise.

Hence, the correct option is B.