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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Feb 20, 2025