Question: Which is the active factor of production?
Options:
Land
Labor
Capital
Institute
✅Explanation:
Labor is considered the active factor of production because it involves human effort, skills, and knowledge applied to the production process. While land and capital are essential resources, they are passive factors that require human intervention (labor) to be utilized effectively for producing goods and services.
Labor is considered the active factor of production because it involves human effort, skills, and knowledge applied to the production process. While land and capital are essential resources, they are passive factors that require human intervention (labor) to be utilized effectively for producing goods and services.
📌Other Options:
-(a) Land: Land refers to natural resources like soil, minerals, and water. While essential, land is passive and requires labor to be productive.
-(c) Capital: Capital includes man-made resources like machinery, tools, and buildings. It is also passive and needs labor to operate and maintain it.