Question

Identify the active factors of production.

Options

• Labour, land

• Entrepreneur, labour

• Labour, capital

• Entrepreneur, capital

Answer 1

Entrepreneur, labour

Explanation:

• Active production factors involve human effort and decision-making, directly contributing to the production process.
• Labour involves physical and mental work, while the entrepreneur organizes and coordinates the other factors of production, makes decisions, takes risks, and drives innovation.
• Land and capital are considered passive because they are used in production but do not actively initiate or execute the production process.