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2. Factors of Production – Basic Concepts

Factors of production are essential inputs used to create goods and services, consisting of land, labour, capital, and entrepreneurship. Each factor has unique characteristics, rewards, and plays a critical role in economic activity, impacting productivity and overall economic growth.

Sections

  • 2

    Factors Of Production – Basic Concepts

    Factors of production are essential inputs used to create goods and services, primarily categorized into land, labour, capital, and entrepreneurship.

    Learning Practice

  • 2.1

    Meaning Of Factors Of Production

    Factors of production are the essential inputs needed to produce goods and services, comprising land, labor, capital, and entrepreneurs.

    Learning Practice

  • 2.2

    Land

    This section defines land as a factor of production encompassing all natural resources used in creating goods and services.

    Learning Practice

  • 2.3

    Labour

    Labour represents the human effort used in production, encompassing both physical and mental work.

    Learning Practice

  • 2.4

    Capital

    Capital represents man-made resources used in the production of goods and services.

    Learning Practice

  • 2.5

    Entrepreneur (Enterprise)

    The entrepreneur plays a crucial role in organizing and managing production resources to innovate and bear risk.

    Learning Practice

  • 2.6

    Importance Of Factors Of Production

    The section emphasizes the interdependent nature of the four factors of production and their essential role in driving economic activity and growth.

    Learning Practice

References

ea2.pdf

Class Notes

Memorization

What we have learnt

  • Factors of production are t...
  • The four primary factors ar...
  • Efficient utilization of th...

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