Factors of production - SS1 Agriculture Past Questions and Answers - page 2

Land refers to all natural resources used in production, such as soil for agriculture or oil reserves. An example would be a farm using land for crop cultivation.

Labor involves human effort and skills. Skilled labor can increase productivity and contribute to economic growth by producing goods and services efficiently.

Capital includes machinery, equipment, and financial resources. Investments in capital can lead to increased production capacity and economic growth.

Management involves decision-making, innovation, and risk-taking, which are crucial for efficiently utilizing other factors of production and achieving business success.

Factors of production interact as labor operates machinery (capital) on a piece of land, while management makes decisions on production processes and resource allocation.