A factory worker falls under the category of labour in the factors of production. Labour refers to the human effort, both physical and mental, that is used in the production of goods and services.
Which category of factors of production (land, labour, capital and enterprise) does a factory worker come under?
9 answers
What special feature makes Land different from capital and labour?
The special feature that makes land different from capital and labour is that land is a natural resource that is fixed in supply and cannot be created or produced by human effort. It includes all natural resources used in the production of goods and services, such as soil, minerals, water, and forests.
In contrast:
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Capital refers to man-made goods that are used to produce other goods and services, such as machinery, tools, and buildings. Capital can be increased and improved over time through investment.
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Labour refers to the human effort and skills that contribute to the production process and can also vary in availability and productivity.
In summary, land is a finite resource provided by nature, while capital and labour are created and can be adjusted through human activity.
Define long run in economics in one short sentence.
The long run in economics refers to a period in which all factors of production can be varied, allowing firms to adjust their input levels and capacities fully.
What does that definition mean? What do you mean by varied?
The definition of the long run in economics means that all inputs or factors of production—such as land, labor, and capital—are flexible and can be changed or adjusted by firms in response to market conditions.
When we say inputs can be "varied," we mean that firms have the ability to:
- Increase or decrease the quantity of labor they hire (e.g., more workers or fewer workers).
- Adjust the amount of capital they use (e.g., purchasing more machinery or selling existing equipment).
- Change the size or scale of their operations (e.g., expanding or downsizing a factory).
In summary, unlike the short run, where at least one factor of production is fixed (such as capital or facility size), in the long run, firms have the flexibility to modify all their resources to optimize production and meet demand.
A machine for making plastics was purchased by KK Kingston to improve the output of their product. This is an example of:
A. Labour
B. Entrepreneurial skills
C. Land
D. Capital
A. Labour
B. Entrepreneurial skills
C. Land
D. Capital
This is an example of D. Capital.
The machine for making plastics is a man-made resource used in the production process, which is classified as capital in the factors of production.