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Question
Mention two differences between an entrepreneur and other factors of production.
Short Note
Solution
- Human capital engages other factors of production such as land, labor, and capital, but the entrepreneur is not engaged by other factors of production.
- The entrepreneur assembles all factors of production and puts forth a new business idea to generate profits, whereas other factors of production receive compensation for their productive services by contributing to the entrepreneur's idea.
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Factors of Production
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Name the factors of production.
Match the following and select the correct option.
| Factor of Production | Reward of factor of production | ||
| (i) | Land | (A) | Wage |
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| (iv) | Entrepreneur | (D) | Interest |
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| Column I | Column II |
| 1. Factors of production | P. Human resources |
| 2. Land | Q. Man-made resources |
| 3. Capital | R. Economic resources |
| 4. Entrepreneur | S. Natural resources |
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