Four Factors of Production
The 4 factors of production are:
- Land, Labour, Capital, Enterprise — Correct Answer
- Land, Labour, Capital, Asset
- Land, Labour, Wage, Asset
- Land, Labour, Capital, Interest
Explanation:
Correct Answer: Land, Labour, Capital, Enterprise
The classical four factors of production are: Land, Labour, Capital, and Enterprise.
Quick Summary
- Land — All natural resources; Reward: Rent; Primary & Passive factor
- Labour — All physical and mental efforts by man; Reward: Wages; Primary & Active factor
- Capital — Man-made goods used for further production (tools, machines, money); Reward: Interest; Secondary & Man-made factor
- Enterprise (Entrepreneur) — Business owner who organizes other factors; Reward: Profit; Secondary & Man-made factor
Common Confusion
- 'Asset' and 'Wage' are NOT factors of production — Wage is the reward of labour, not a factor itself.
- 'Interest' is the reward for Capital, not a factor.
📚 About this Topic — Animal Refresher
This multiple choice question is from Animal Refresher, Veterinary Extension Education. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from Animal Refresher to strengthen your preparation.
