How human capital is most important factor of production?

How human capital is most important factor of production?

Answer. (a) Human capital refers to the people who possess the knowledge and enterprises to put together the other factors of production. (b) Investment in human capital yields a return just like investment in physical capital. (c) It is essential as physical capital cannot produce goods and services on their own.

What is the most abundant factor of production?

Land

What is a scare factor of production?

Then my answer would be ‘Land’. Land is a scarce natural resource. You cannot increase it, though you can turn wastelands into more cultivable land.

Which factor is most scarce and why?

Land is the most scarce factor because unlike capital, entrepreneurs and labour, it is limited and only a certain amount can be used.

Is Labour most abundant factor of production?

Among the three factors of production, we found that labour is the most abundant factor of production. There are many people who are willing to work as farm labourers in the villages, whereas the opportunities of work are limited.

Which is the most scarce factor of production?

capital

What is the most abundant factor of production in the village Palampur?

labour

Which is the scarce and abundant factor of production?

The 4 factors of production are Land, Labour, Capital and Entrepreneurship. There is a scarcity of resources and the demands are unlimited. Economics is present today in order to reduce the problem through efficient allocation of resources. Hence, no factor of production is abundant.

Which factors are scarce?

The resources that we value—time, money, labor, tools, land, and raw materials—exist in limited supply. There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity.

Which answer is not a factor of production?

Goods and services are not factors of production. Factors of production are inputs that are needed to provide goods or services. They include, land, labor, capital, and entrepreneurship.

Which is an active factor of production?

Land and labour are two essential factors of production. Since the real work of production is done by labour it is considered as the active factor of production.

Which one of the following is an example of capital as a factor of production?

Capital comprises one of the four major factors of production, the others being land, labor, and entrepreneurship. Common examples of capital include hammers, tractors, assembly belts, computers, trucks, and railroads.

Why land is important factor of production?

Land is considered the primary factor of production. Land is rich in coal, water and petroleum, which are used for generating power. Land is required to construct factories and industries to carry out the production process.

What is capital in the factors of production?

In economics, capital refers to the assets–physical tools, plants, and equipment–that allow for increased work productivity. By increasing productivity through improved capital equipment, more goods can be produced and the standard of living can rise.

What are the two types of capital?

In business and economics, the two most common types of capital are financial and human.

What is the role of capital?

Capital, the produced means of production, is indispensable for the creation of wealth. Capital is essential if a country is to produce the huge quantity of various goods and services necessary for consumption today. It, indeed, plays a very important role in production.

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