Question

Visit a factory and show how the four factors of production are effectively employed to produce the product in your locality?

Answer 1

1. A Factory is considered capital in the factor of production.
2. Capital is any good that was used to create other goods.
3. A natural resource it can’t be land, since it’s not the actual workers within the factory it can’t be labour, so it has to be capital.

Factors affecting the location of Industries are as follows:

1. Raw Materials
2. Capital
3. Transport
4. Market
5. Water
6. Power
7. Land
8. Labour
9. Communication

Main factors affecting the location of Industries are as follows:

1. Land
2. Labour
3. Capital
4. Entrepreneurship
   • Factors of production refers to the inputs of the production process.
   • Factors of productions are resources that produce goods and services.

These are four categories of factors of production:

Land:
Natural resources that we use to produce goods and services.

Example:
Oil, gas and goal, water etc.

Labour:
The work time and work effort that people devote to producing goods and services. This includes human capital which is the quality of the labour forming from knowledge and skills of the person obtained from education, on the job training and work experience.

Capital:

1. The tools, instruments, machine, buildings and other items that are used to produce goods and services.
2. This includes machinery, hammers, etc.

Entrepreneurship:
The human resource that organizes labour, land and capital. This includes the idea, plan etc. about how and what to produce.