McqMate
| Q. |
Enterpreneurial ability is a special kind of labour that - |
| A. | is hired out to firms at high wages |
| B. | organizes the process of production |
| C. | produces new capital goods to earn interest |
| D. | manages to avoid losses by continual innovation |
| Answer» B. organizes the process of production | |
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Explanation: In economics, factors of production are the inputs to the production process. Factors of production' may also refer specifically to the 'primary factors', which are stocks including land, labor (the ability to work), and capital goods applied to production. Many economists today consider "human capital" (skills and education) as the fourth factor of production, with entrepreneurship as a form of human capital. In markets, entrepreneurs combine the other factors of production, land, labor, and capital, in order to make a profit. |
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