Question

How does the economy use its factors of production (land, labor, capital, and entrepreneurship) to facilitate economic growth?

Answer 1

land

air

building new structures vertically in the air

sand

building new islands at sea

labor

construction workers

building the Burj Khalifa

human capital

engineering skill

building a ski slope in the desert

physical capital

machinery

cranes used for construction

entrepreneurship

leader's action to develop the city

making Dubai into a business and entertainment center for the Middle East

Answer 2

Here is the answer to the given question above. The factors of production include land, labor,capital and entrepreneurship and these four are considered as the building blocks of the economy. The first factor is land. This is where most of the resources are gathered especially the natural resources in order to produce goods and services. The second is labor. In other words, this is known as the manpower. This is the effort contributed in order to produce goods and services. Third is the capital. The capital includes the machineries and the tools that are used by the people for labor. And fourth is entrepreneurship. The entrepreneur is the person who has the ability to combine the three other factors in order to gain profit.