Factors of Production: Land, Labor, CapitalWhat It MeansIn economics the term factors of production refers to all the resources required to produce goods and services. Land, Labour, and Capital are the main factors of production. Input is the starting point of every production activity. For success, a grower must have a clear understanding and knowledge of the following critical factors: Marketing and Distribution. Which of the following is an assumption used when drawing a production possibilities frontier? c (14,12) d (18,9) e (20,5) f (21,0) a (0,15) b (8,14) S . Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Only two goods are considered … a. The land is taken to refer to all the natural resources over which people have the power of disposal and which may be used in creating goods and also to yield an income. Let us learn more about entrepreneurs and their main functions.. Factors of Production – Entrepreneurs According to Prof. Benham, "Anything that contributes towards output is a factor of production.". All of the following are factors of production EXCEPT: A. capital B. labor C. currency D. land The classical factors include land, labor, and capital. Tags: Question 5 . Entrepreneur A person who, operating within the context of a market economy, seeks to earn profits by finding new ways to organize factors of production. Similarly steel is an input for coal industry and hence it is also a factor of production. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. answer choices . The entrepreneur can be an individual or a group. The factors of production in an economy are its labor, capital, and natural resources. Economists say that the four factors of production are the building blocks of the economy. These factors of production are knowledge, collaboration, process-engagement, and time quality. c) Randy, who has worked as a mechanic for twenty years. Explanation: By definition, a factor of production is any resource that is used to produce a good or service. Possibilities frontier . The last resource, entrepreneurship, refers to the ability to put the other three resources together to create value. 6. A company's production can be represented graphically as a production curve. ... Resources that are cultivated or made with human effort can’t be considered natural resources, which is why crops aren’t natural resources. There are four main factors of production. The entrepreneur, therefore, should study the various forces (factors) which may affect the cost behaviour in the long run. Entrepreneurship is the creative decision making, risk taking or starting a business venture, it involves the coordinating of all the factors of production in order to produce goods and services. The first represents resources whose supply is low in relation to demand and cannot be increased as the result of production. Land includes farming land, building land, forests, rivers, lakes and mineral deposits. The factors of production are land, labor, capital, and entrepreneurship. Examples of entrepreneurship include Bill Gates and Henry Ford. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. Capital. soil, water, air) that can be used in the production process. C. To put it in different terms, the factors of production are the inputs needed for supply. d) All of the above are factors of production. The factor of production termed labor means human resources. A. Scope, and III. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function.There are three basic resources or factors of production: land, labour and capital. Entrepreneur. Both the laborers and organizers come under the category of ‘Man’. In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. This is due to the fact that entrepreneurs bring together land, labor and capital to bring final products to market. Factors of production refers to inputs required for conducting production. The following is an adapted excerpt from my book Microeconomics Made Simple: Basic Microeconomic Principles Explained in 100 Pages or Less. The four factors of production describe all the inputs or resources that are used in the production of goods and services. 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