Question

What are factors of production?1/ all the human efforts involved in the production process2/ all the resources used to produce any goods and services 3/all the physical tools and equipment used in the production process 4/all the naturally occurring resources found in land, air, and water NextReset

Answer 1

Answer: The answer is 2: all the resources used to produce any goods and services.

Explanation:

Factors of production refers to the all the inputs used to produce goods and services in order to make profit. It also means resources required for generating or creating goods and services. The factors of production are land, labour, capital and entrepreneurship. Organisations construct factors of production as management, technology, machines, materials, labour and so on.