Q.Write a short note on: Factors of Production

Factors of production are the inputs used to produce goods and services — land, labour, capital and organisation (enterprise).

Explanation

Factors of production are the productive resources that are combined to produce goods and services. Economists classify them into four groups:

• Land — all free gifts of nature such as soil, minerals, water and climate; its reward is rent.
• Labour — any mental or physical human effort used in production; its reward is wages.
• Capital — man-made means of production like machines, tools and buildings; its reward is interest. …