Which of the following is not a factors of production?

Which of the following is not a factors of production? Correct Answer Working capital

The correct answer is Working capital.

  • Factors of Production are the resources used by people to produce goods and services.
  • The factors of production are divided into four categories:
    • Land
    • Labour
    • Capital
    • Entrepreneur.
  • The earnings made by the use of these factors of production is known as factor income.
  • Land gives rent, labourer gets wages, capital earns interest and entrepreneur enjoys profit.
  • Fixed capital refers to the capital that is not consumed or destroyed in the production of goods and services for example- plant and machinery, tools and equipment, property and building, etc.
  • Working capital is the capital required by the business for day-to-day operations for example- raw materials, finished goods, spares, etc.

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