Money is not considered as a factor of production. Money is medium of exchange and hence it cannot help to increase the productivity of an economy like other factors of production, thus the factors of production are Land, Labour, Capital and Entrepreneurship.
Which of the following is not a factor of production answers?
The correct answer is (a) money . Money facilitates the production process.
Which of the following is not a factor of production?
Answer Expert Verified. Goods and services are not factors of production. Factors of production are inputs that are needed to provide goods or services. They include, land, labor, capital, and entrepreneurship.
What are the 4 5 factors of production?
The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship .
What are the 4 factors of production and examples?
The four main factors of production are land, or the physical space and natural resources, labor, or the workers, capital, or the money and equipment, and entrepreneurship , or the ideas and drive, which are used together to make a successful attempt at selling a product or service according to traditional economic ...
What are the 7 factors of production?
= h [7]. In a similar vein, Factors of production include Land and other natural resources, Labour, Factory, Building, Machinery, Tools, Raw Materials and Enterprise [8].
What are the main factors of production class 9?
There are four factors of production i.e. land, labour, physical capital and human capital . The first requirement for production is land.
Is money a factor of production?
In economics, capital typically refers to money. However, money is not a factor of production because it is not directly involved in producing a good or service. Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or to pay wages.
Which type of factor of production is a road?
In much of economics, however, “ capital” (without any qualification) means goods that can help produce other goods in the future, the result of investment. It refers to machines, roads, factories, schools, infrastructure, and office buildings which humans have produced to create goods and services.
Which description is the best example of physical capital?
Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital.
What are the six factors of production?
- natural resources. everything that is made of natural materials.
- raw materials. any good used in manufactoring other goods.
- labour. all physical and mental work needed to produce goods or services.
- capital. ...
- information. ...
- entrepreneurship.
What is the main factor of production?
The four main factors of production are land, or the physical space and natural resources, labor, or the workers, capital, or the money and equipment , and entrepreneurship, or the ideas and drive, which are used together to make a successful attempt at selling a product or service according to traditional economic ...
Which is the most abundant factor of production?
Among the three factors of production, we found that labour is the most abundant factor of production.
What is capital in the four factors of production?
Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship . Common examples of capital include hammers, tractors, assembly belts, computers, trucks, and railroads.
What are the characteristics of factors of production?
- Land. In ordinary sense ‘land’ refers to the soil or the surface of the earth or ground. ...
- Labour. Labour is the active factor of production. ...
- Capital. Marshall says “capital consists of all kinds of wealth other than free giftsofnature,whichyield income”. ...
- Organization.
What is production process?
A production process is the method of using economic input or resources , like labor, capital equipment or land, to provide goods and services to consumers.
