Natural resources used in production, either fixed or consumed, are called:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Land
The four factors of production are land, labour, capital and entrepreneurship. Natural resources, fixed or used up, are land; its reward is rent.
NCERT (2026-27): Glossary: “Land – Natural resources used in production – either fixed or consumed.” “2.2 Circular Flow of Income and Methods of Calculating National Income … As we have mentioned before, there may fundamentally be four kinds of contributions that can be made during the production of goods and services (a) contribution made by human labour, remuneration for which is called wage (b) contribution made by capital, remuneration for which is called interest (c) contribution made by entrepreneurship, remuneration of which is profit (d) contribution made by fixed natural resources (called ‘land’), remuneration for which is called rent. …” |