Which of the following is not a correct match for the major factors of production?

Entrepreneurship and Economy

The correct answer is option 3- Entrepreneurship and Economy.

Economy is not a factor of production.

Entrepreneurship is regarded as one of the four major factors of production, the other three being land, labour and capital.

The major factors of production are the key resources used in the process of producing goods and services. These factors are typically divided into four categories:

1. Land: This refers to all natural resources used in the production of goods and services, including raw materials, water, forests, minerals, and land itself. Example: A farmer uses land to grow crops, or a mining company uses land to extract minerals.

2. Labor: Labor is the human effort, both physical and mental, used in the production process. It includes the work done by employees, workers, and any individuals contributing their skills or effort. Example: A factory worker assembling products or a teacher educating students.

3. Capital: Capital refers to the tools, machinery, infrastructure, and technology used in the production of goods and services. It also includes financial resources that are invested to generate further production. Example: Machines in a factory, computers in an office, or a truck used for transporting goods.

4. Entrepreneurship: Entrepreneurship is the ability and willingness to combine the other factors of production—land, labor, and capital—to create and run businesses. Entrepreneurs take on the risk of innovation and production, aiming to generate profits. Example: A business owner who creates a new product, organizes production, and takes risks to market it.