What are four factors of production and what do you pay for them?

Answer 1

Raw Material (Nova NEt)Factors of production

Human activity can be broken down into two component parts, producing and consuming. When there is production a process of transformation takes place. Inputs are converted into an output. The inputs are classified and referred to as, land, labour, and capital. Collectively the inputs are called factors of production.

When the factors of production are combined in order to produce something, a fourth factor is required. Goods and services do not produce themselves but need some conscious thought process in order to plan and implement manufacture. This thought process is often called entrepreneurship. Bill Gates the founder of 'Microsoft' the successful software company is an entrepreneur. It is hard to say what it is that makes Bill Gates more financially successful than say the local seller of computers.

The difficulty of classifying and quantifying entrepreneurship leads some economists to leave it out when listing the factors of production. Others prefer to include entrepreneurship as a factor, whilst recognizing the problems that doing so presents. Entrepreneurship however, might be defined as risk taking

Physical Resources - Not limited to the land itself, and raw materials such as oil and minerals beneath it. Tangible things that organizations use to conduct their business. Trees grown by foresters are not classed as land because they have been deliberately grown. Trees in a natural rain forest are a natural resource and thus classified as land. The reward for letting others use land is called rent.

Labour - human effort, mental (sometimes called information resources) or physical. Be careful not to confuse this with enterprise. The reward to labor is termed wages.

Capital - The financial resources needed to operate an enterprise

Enterprise (Entrepreneurship) the risk taking activity that utilizes land, labor and capital to produce goods or services in the expectation of a future reward. That reward is called profit in economics.

there r four factor of production

• Land

• without the land there is vary difficult to produce the wealth but not impossible... there r many things require for the like the all thing i.e mines water n other many things com in this session

• labour
• mostly workers work in the factory r in any other company basically we are need for the workers for the production
• capital
• it is the basic thing that if we don't invest the capital then it is impossible to produce the wealth
• organization
• every one knows that if there is no organization the that impossible to production because if any one is not controlling to any work then how that can produce any thing