Question

State two active factors of production. Give reasons to support your answer.

Answer 1

1. Labour: Labour involves the physical and mental efforts of individuals actively contributing to the production process. Workers, such as factory employees, teachers, and doctors, provide the human effort needed to create goods and services. Labour is considered an active factor because it is the driving force behind using other resources like capital and land. Without labour, the production process cannot take place.

2. Entrepreneur: The entrepreneur is responsible for organising and managing the other factors of production (land, labour, and capital). Entrepreneurs take the initiative, make decisions, innovate, and bear the risks involved in production. They actively direct and control the production process, making them an essential and active factor in ensuring efficient resource use.