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The basic factors of production are land, labour, capital and,
Enterprise
Investment
Machinery
Resources
- Factors of Production:
- Land: Natural resources available for production, like forests and minerals.
- Labour: Human effort used in production processes.
- Capital: Machinery, tools, and buildings used in production.
- Enterprise: The risk-taking and management ability necessary to coordinate the other factors.
- Options:
- Enterprise: The right answer, as it refers to the entrepreneurial skills needed for production.
- Investment: Use of capital in projects. It's linked to capital rather than being a standalone factor.
- Machinery: A type of capital.
- Resources: A broader term that often includes land and raw materials, not a separate production factor.
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