Labour and entrepreneur are examples of

Assessment: JAMB UTME - Commerce - 2025 Subject: Commerce

Question 1 Report

Labour and entrepreneur are examples of

 

 

 

Answer Details

This question tests knowledge of the resources needed to produce goods and services, which are traditionally grouped into land, labour, capital, and entrepreneur.

Labour refers to the human effort, physical or mental, applied in production, while the entrepreneur is the person who organizes the other resources, takes business risks, and makes key decisions to bring production about. Because both labour and the entrepreneur belong to this same group of essential production resources, they are correctly classified together as factors of production.

The other options describe different concepts. Primary production refers to the extraction or gathering of raw materials directly from nature, such as farming, mining, or fishing, which is a stage of production rather than a resource used in production. Direct services are personal services rendered directly to consumers, such as those provided by doctors or teachers, which is also unrelated to the classification of labour and the entrepreneur. Division of labour describes how a production process is broken into smaller specialized tasks performed by different workers, which is a method of organizing labour, not a category that labour and entrepreneur both belong to.

Whenever land, labour, capital, or the entrepreneur are grouped together in a question, the correct classification is factors of production.

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