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Define the factors of production |
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Answer» Every production is organised by combining land, labour, physical capital and human capital , which are known as factors of production Factors of production\xa0are the resources people use to\xa0produce\xa0goods and services; they are the building blocks of the economy. Economists divide the\xa0factors of production\xa0into four categories: land, labor, capital, and entrepreneurship.\xa0Land,\xa0labor, and\xa0capital\xa0as factors of production were originally identified by the early political economists such as Adam Smith, David Ricardo, and Karl Marx. Today,\xa0capital\xa0and\xa0labor\xa0remain the two primary inputs for the productive processes and the generation of profits by a business. |
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