Question

Match the factors of production with their respective categories.

• A. Chef and waiters
• B. Kitchen and dining
• C. Money
• D. Owner

Answer 1

The factors of production include land, labour, capital, and entrepreneur. These factors are required for the production of any good or service.

For example, in a restaurant, the kitchen and dining area are categorised under the land. The chef and the waiters form a part of the labour. The money used for setting up the restaurant and the daily working of the restaurant fall under capital. The idea for the venture can be classified under entrepreneur. Therefore, the entrepreneur becomes an essential factor of production.