Which of the following is an active factor of production?
A
Land
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B
Labour
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C
Capital
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D
Organisation
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Solution
The correct option is B Labour The factors of production include land, labour, capital and entrepreneurship.
Other factors like land, capital are passive and but labor is an active factor.
Land and labour are two essential factors of production. Since the real work of production is done by labour it is considered as the active factor of production.