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Q.

Choose given statement True/False:

There are four factors of production.

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a

True

b

False

answer is A.

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Detailed Solution

The above statement is True.
There are four factors of production. These include capital, land, labour, and entrepreneurship. Labour is the most abundant factor of production. There are many people in villages who are willing to work as farm labourers. They belong to landless families or families cultivating on small plots.
On the contrary, land is a scarce factor of production. To make the best use of existing land, farmers use multiple cropping and modern farming. Both these factors have led to an increase in the production of crops.

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