What are the four factors of production and what are the remunerations to each of these called?
What are the four factors of production and what are the remunerations to each of these called?
The four factors of productions are
1. Land: It is a free gift of nature and it is called as a natural, original or primary factor of production.
2. Labour: Person or people engaged in some physical work form the labour force which is a factor of production.
3. Capital: It means wealth, money or income which is invested in a business to boost production.
4. Entrepreneur: It is the work of an entrepreneur to bring the required factors together and make them work harmoniously.
The remuneration to them are as follows:
1. Land: Rent is a reward for the use of land.
2. Labour: Wages are the reward for labour.
3. Capital: Interest is the reward for capital.
4. Entrepreneur: Profit is the reward for an entrepreneur.
The four factors of productions are
1. Land: It is a free gift of nature and it is called as a natural, original or primary factor of production.
2. Labour: Person or people engaged in some physical work form the labour force which is a factor of production.
3. Capital: It means wealth, money or income which is invested in a business to boost production.
4. Entrepreneur: It is the work of an entrepreneur to bring the required factors together and make them work harmoniously.
The remuneration to them are as follows:
1. Land: Rent is a reward for the use of land.
2. Labour: Wages are the reward for labour.
3. Capital: Interest is the reward for capital.
4. Entrepreneur: Profit is the reward for an entrepreneur.
