Factors Of Production

Question 1

What is factors of production?

Answer 1

For production activities to take place, certain factors are those resources which make it possible for goods to be produced.

Question 2

What are the four features of factors of productin

Answer 2

They are land, labour, capital and entrepreneurship

Question 3

What is land ?

Answer 3

Land refers to all natural resources e.g fields and forests gas,oil and metals.

Question 4

What are the features of land

Answer 4

-Reward for land is rent
-Land is immovable
-Its a place where industries are sized
-The price of land varies
-Land is natural.

Question 5

What is labour

Answer 5

Labour is human efforts, physical and mental directed towards production.

Question 6

What are the features of labour

Answer 6

• Labour is human input
• The reward for labour wages/salaries
• Labour can be developed through training
• Labour has feelings

Question 7

What is Capital

Answer 7

Capital refers to money, property and machines and equipment needed for production and it also generates profit

Question 8

What are the features of capital

Answer 8

• Capital is manmade
• Capital is immovable
• Capital can be destroyed.

Question 9

What is Entrepreneurship

Answer 9

Entrepreneurship is when a person or organisation decides to go into business.

Question 10

`Features of Entrepreneurship

Answer 10

• The reward for entrepreneurship is interest
• Entrepreneurship is also called enterprise/management
  -The entrepreneur organises the other factors of production
• The work of the entrepreneur is part of the human input on production.

Question 11

What is the importance of factors of production?

Answer 11

• Availability of goods and services
• Provision of location and raw materials for production
• Application of mental physical efforts for production
• Provision of materials and equipment for production
• Supervision of the other factors of production.