Ch-2 Factors of
Production
1. What are the factors of production?
Answer: - Factors of production are the
economic resources of land, labour, capital
and enterprise
2. What is land?
Answer: - Land is a gift of nature available for
production. It can be used for buildings,
houses, offices, agriculture and etc.
, 3. Define ‘Labour’. Give an example
Answer: - Labour is the human effort used in
producing goods and services, including the
physical and mental work, for example; a road
sweeper which cleans and sweeps the road, is
putting both the physical and mental effort.
4. What is capital? Give an example
Answer: - Capital is any human-made good
used to produce other goods and services, for
example; factories. Capital is also referred to
as capital goods and producer goods
Production
1. What are the factors of production?
Answer: - Factors of production are the
economic resources of land, labour, capital
and enterprise
2. What is land?
Answer: - Land is a gift of nature available for
production. It can be used for buildings,
houses, offices, agriculture and etc.
, 3. Define ‘Labour’. Give an example
Answer: - Labour is the human effort used in
producing goods and services, including the
physical and mental work, for example; a road
sweeper which cleans and sweeps the road, is
putting both the physical and mental effort.
4. What is capital? Give an example
Answer: - Capital is any human-made good
used to produce other goods and services, for
example; factories. Capital is also referred to
as capital goods and producer goods
