What do you mean by factors of Production? |
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| Ans : The resources that are needed to create final goods and services are called factors of production. In other words factors of production refer to those goods and services which are required to produce other goods services. For example, if a farmer wants to produce wheat, he will need land, labor, seeds, manure etc. All these things are factors of production. Production is impossible without factors of production. The factors of production are the essential element which co-operates with one another in the production process.
According to J.L Hansen,” The factors of production are the resources required for production.”
Factors of production are also known as inputs or agents of production. The factors of production are classified as:
i) Land
ii) Labor
iii) Capital
iv) Organization
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