Question

How many factors of production are there in modern age?

• A. 2
• B. 3
• C. 4
• D. 5

Hint:

Remember L-L-C-E: Land, Labour, Capital, Enterprise—four factors in the modern framework.

Answer 1

The Correct Option is C

In modern economics at the Class 12 level, the factors of production are taken as four: Land, Labour, Capital, and Enterprise (also called Organisation).
Land includes all natural resources; Labour denotes human effort (physical and mental); Capital means man-made productive assets; and Enterprise coordinates the other three and undertakes risk.
While some discussions add "technology" as a separate input, the standard school framework recognizes these four core factors.