Question

The four factors of production are able to account for most of the increase in production in the US although some other factors such as increased educational level have had a small effect. True or False?

Answer 1

Answer -

The given statement is false.

Explanation -

The four factors of production land, labour, capital and entrepreneur are very important for the increase in production.Out of these four factors if anyone factor is absent , production activity becomes impossible.

But alongwith these four factors education is also an important factor for increase in production in US.With the increased educational level many entrepreneurs with their advanced skills and knowledge they can achieve a great sucess in business world by increasing level of production and earns a reputation in the market.

Increased educational level in terms of labour also helps to create skilled labour force which increases productivity and also results in more profitability.

With the effect of increasing education level efficiency and advanced methods of production are used for increasing level of production and also minimising the production costs.