Match the factors of production (List-I) with their meanings as given in the NCERT Glossary (List-II):
| List-I | List-II |
|---|---|
| (A) Land | (I) Human physical effort used in production |
| (B) Labour | (II) The task of organising, coordinating and risk-taking during production |
| (C) Capital | (III) Natural resources used in production, either fixed or consumed |
| (D) Entrepreneurship | (IV) A factor of production which has itself been produced and is not generally entirely consumed in production |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
Land, labour, capital and entrepreneurship are the four factors of production. Each one gives a different service in production.
| List-I | List-II | Reason |
|---|---|---|
| (A) Land | (III) Natural resources used in production, either fixed or consumed | A plot of land is fixed; raw materials are used up. |
| (B) Labour | (I) Human physical effort used in production | Labour is the work done by people. |
| (C) Capital | (IV) A factor of production which has itself been produced and is not generally entirely consumed in production | A machine is made by people and lasts over many rounds of production. |
| (D) Entrepreneurship | (II) The task of organising, coordinating and risk-taking during production | The entrepreneur organises the other factors and bears the risk. |
NCERT (2026-27): Glossary: “Land – Natural resources used in production – either fixed or consumed.” Glossary: “Labour – Human physical effort used in production.” Glossary: “Capital – Factor of production which has itself been produced and which is not generally entirely consumed in the production process.” Glossary: “Entrepreneurship – The task of organising, coordinating and risk-taking during production.” |