To carry out production, an entrepreneur needs capital, natural resources and labour. Which of these does NCERT call ‘the most important element’?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Human labour
An entrepreneur needs capital, natural resources and labour. Of these, human labour is called the most important element of production.
NCERT (2026-27): “1.2 Context of the Present Book of Macroeconomics … They may themselves supply the capital needed to run the enterprise, or they may borrow the capital. To carry out production they also need natural resources – a part consumed in the process of production (e.g. raw materials) and a part fixed (e.g. plots of land). And they need the most important element of human labour to carry out production. This we shall refer to as labour. …” |