Question

Read the following extract and answer the questions that follow.

Ramchander is a farmer who owns 10 hectares of land along with a tractor and a pump-set for irrgation. He hires Tejpal, Savita and Dinnanath to cultivate his land.

1. What are the four primary factors of production? Name them.
2. Who Ramchander or Tejpal is an Entrepreneur and why?

Answer 1

a. Four Primary Factors of Production are:

1. Land 
2. Labour 
3. Capital 
4. Entrepreneurship

b. Ramchander is an entrepreneur because he combines all the other three factors - land labour and capital together and bears risks involved in the production process.