The production process of an organization can be efficient, if there is an optimal use of factors. Factors of Produc-on The scarce produc:ve resources of an economy can be placed into one of the four following headings. Factors of Production Definition. Collectively, these inputs are called the factors of production. The four factors are land, labour, capital and human enterprise. The factors of production are land, labor, capital, and entrepreneurship. Economists have expressed different views regarding the number of factors of production. Choices concerning what goods and services to produce are choices about an economy’s use of its factors of production , the resources available to it for the production of goods and services. This episode of our podcast series, The Economic Lowdown, discusses the factors of production. The classical economists classified factors of production into four kinds namely land, labor, capital and organization . Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The income derived from the ownership of this factor is known as economic rent. Explain in words or using a graph. To put it in different terms, the factors of production are the inputs needed for supply. In other words, they are the inputs that we use to produce goods and services so that we can make an economic profit.. We divide the factors of production into the following four categories: Land, Labor, Capital, and Enterprise. Actually, it is labour which in cooperation with land makes production possible. What are the factors of production? Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Create an account to start this course today The first represents resources whose supply is low in relation to demand and cannot be increased as the result of production. Simply put, resources are the inputs used to produce outputs (goods and/or services). Explain the four factors of production All businesses, both for-profit and nonprofit, need resources in order to operate. The factors of production can be used as … Land is a passive factor whereas labour is an active factor of production. While knowledge is as old as humankind, it is only recently that it has been recognized as a factor of production. The productive factors are commonly classified into three groups: land, labour, and capital. There are four factors of production: land, labour, capital and entrepreneurship (also known as … Explain the role of technology and entrepreneurs in the utilization of the economy’s factors of production. The factors of production are the names for the inputs needed to produce a good or service. They are the resources businesses use to create wealth. The factors of production are the building blocks of any economy. Factors which are used to carry out the process of production are called factors of production. There are five factors of production: land, labour, capital, entrepreneurship, and knowledge. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. Factors of production are those agents which help in the production of various goods. This implies that the factors of production should be used in combination, so that the production target can be achieved. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. In the modern economy, economists classified these factors into two categories. 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