Question

Why is capital a passive factor of production?

• A. Because it becomes ineffective without cooperation of labour
• B. Because it becomes ineffective without land
• C. Because it becomes ineffective without entrepreneurs
• D. Because it becomes ineffective without natural resources

Answer 1

The correct option is A Because it becomes ineffective without cooperation of labour

Without the presence of labour factor of production ,capital is of no use,hence capital is a passive factor of production. Without labour , capital will not get utilized in the production mechanism. Capital without the accompany of the labour cannot produce any goods and services in an economy.