CBSE Class 10 Answered

Factors of production is an economic term that describes the inputs used in the production of goods or services to make an economic profit. There are mainly four factors of production: Land, labour, entrepreneurship and capital.

Land: It refers to all natural resources. All natural resources either on the surface of the earth or below the surface of the earth or above the surface of the earth is Land. One uses the land to produce goods. It is the primary and natural factor of production. All gifts of nature such as rivers, oceans, land, climate, mountains, mines, forests etc. are lands.

Labour: All human effort that assists in production is labour. This effort can be mental or physical. It is a human factor of production. It is the worker who applies their efforts, abilities, and skills to produce.