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The basic factors of production are land, labour, capital, and _____.
Enterprise
Investment
Machinery
Resources
- The basic factors of production are essential inputs for the production of goods and services.
- Land: This includes all natural resources used in production, like minerals, forests, and water.
- Labour: Human effort, including physical and mental, used in the production process.
- Capital: Refers to man-made resources like machines, buildings, and technology used in production.
- Enterprise: The entrepreneurial ability to combine the other factors of production, take risks, and innovate.
- Option 2, Investment: This refers to spending on capital goods, but it's not a basic factor of production.
- Option 3, Machinery: It's a part of capital, not a separate factor of production.
- Option 4, Resources: While broadly applicable, it doesn't specify the entrepreneurial aspect.
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