ECO. 101 Online/ Quiz for Discussion—17-4-2023

Name: Prince Emmanuel Obia
Department: Economics
Level: 100L
Course Code: Eco 101
Reg No.: 2021/248597

1. What are Factors of Production?

Factors of production refer to the resources that are used in the production of goods and services. There are four main factors of production, which include:

Land: This refers to all natural resources that are used in production, such as land, water, forests, and minerals.

Labor: This refers to the human effort that is used in production. It includes both physical and mental labor, as well as any skills or knowledge that workers bring to the production process.

Capital: This refers to the goods that are used in production, such as machinery, equipment, buildings, and tools. Capital can be divided into two categories: physical capital, which refers to tangible goods, and financial capital, which refers to funds that are used to purchase physical capital.

Entrepreneurship: This refers to the ability of individuals to organize and manage the other factors of production in order to produce goods and services. It includes the ability to identify opportunities, make decisions, and take risks.

2. Why are they important to the economic growth of Nigeria?

Factors of production are crucial for economic growth in Nigeria, as they determine the country’s ability to produce goods and services. Nigeria is a developing country with a growing population, and to sustain its economic growth, it needs to produce more goods and services to meet the demands of its people.

Land is an important factor of production in Nigeria, as the country is rich in natural resources, such as oil, gas, and minerals, which can be used to drive economic growth. However, there is a need to manage these resources effectively and ensure that they are used sustainably to avoid environmental degradation.

Labor is another crucial factor of production in Nigeria, as the country has a large workforce that can be harnessed to drive economic growth. However, there is a need to invest in education and skills training to ensure that the workforce is equipped with the necessary skills to contribute effectively to the economy.

Capital is also important to economic growth in Nigeria, as it provides the necessary funds to invest in infrastructure, technology, and other factors of production. Nigeria needs to attract foreign investment and improve its domestic savings to increase its capital base and drive economic growth.

Finally, entrepreneurship is important to economic growth in Nigeria, as it drives innovation and creativity, leading to the development of new products and services. Nigeria needs to create an enabling environment for entrepreneurship, such as providing access to finance, reducing bureaucratic barriers, and protecting intellectual property rights.

In summary, factors of production are critical to the economic growth of Nigeria, and the country needs to manage them effectively to realize its potential and drive sustainable development.

3. What are three basic economic questions in any economy?

The three basic economic questions in any economy are:

What to produce: This refers to the decision of what goods and services should be produced to meet the needs and wants of the people in the economy. The decision is based on factors such as the availability of resources, consumer demand, and government policies.

How to produce: This refers to the decision of how goods and services should be produced, taking into account the most efficient and cost-effective methods. This involves choosing the optimal combination of factors of production, such as labor and capital, to produce the goods and services.

For whom to produce: This refers to the decision of who gets to consume the goods and services produced in the economy. It involves determining the distribution of income and wealth, and ensuring that goods and services are distributed fairly and efficiently to meet the needs of all members of society.

4. Elaborate and give answers to them in the Nigerian context.

What to produce: In Nigeria, the decision of what goods and services to produce is based on a number of factors. The country is rich in natural resources such as crude oil, gas, minerals, and agricultural products, and so the production of these goods has traditionally been a major part of the economy. However, in recent years, there has been a growing emphasis on diversifying the economy to include other sectors such as manufacturing, services, and technology. This is because the over-reliance on the oil sector has made the economy vulnerable to fluctuations in global oil prices. Additionally, the government has a role to play in determining what goods and services are produced by providing incentives for certain industries or sectors, and by implementing policies that support economic diversification and growth.

How to produce: In Nigeria, the decision of how goods and services are produced is based on factors such as the availability of resources, technology, and the cost of production. The country has a large and growing population, and so there is a need to produce goods and services efficiently to meet the needs of the people. In recent years, the government has been investing in infrastructure such as roads, bridges, and power supply, to improve the business environment and attract investment. Additionally, there is a growing emphasis on using technology to drive productivity and efficiency, and to reduce the cost of production.

For whom to produce: In Nigeria, the decision of who gets to consume the goods and services produced in the economy is based on a number of factors, including income, wealth, and social status. The country has a high level of income inequality, with a significant proportion of the population living in poverty. Therefore, there is a need to ensure that goods and services are distributed fairly and efficiently to meet the needs of all members of society. The government plays a role in ensuring this by implementing policies such as social welfare programs, subsidies for basic goods and services, and progressive taxation to redistribute wealth and income. Additionally, the private sector has a role to play in ensuring that goods and services are affordable and accessible to all members of society by offering products at different price points and improving access to credit.

Name:- Okereke Chiamaka Stephanie
Department:- Economics
Reg no :- 2021/248595

Question 1
Firstly, what are factors of production?
In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of an economy. Factors of production can also be term that describes the inputs used in the production of goods or services to make an economic profit. These include any resources needed for the creation of a good or service.
Economist divided the factors of production into four categories; they include-
1. Land
2. Labour
3. Capital
4. Entrepreneur

a. Land:- This is the first factor of production. It includes anything that is considered a natural resources but also the physical space within a location as well. The definition of land can be extensive and includes the different forms of what comes from the land. Some of the resources that this land are responsible for providing includes things like:- oil, timber, coal, or gold. These substances are mined and turned into marketable products like gas, electricity, jewelries and more. Additionally, land is also considered as a resource within the real estate market both residentially and more.

2. Labour:- The second factor of production is “labour” which encompasses the physical exertion of human individuals to produce the goods and services sold. They also includes the level of work people put in creating a production to sell. There are many facets to what comprises a person’s labour value, which is specific to the product being produced.

3. Capital:- perhaps an entrepreneur gets his business moving extensively, he needs money to run it or to advertise any of his product on sale. He may also have to get equipments for the process of the products. Both of these things, money- equipments- are considered capital. More specifically, capital can be the money companies use to buy resources, as well as the physical assets companies use when producing goods and services such as factories and machinery.

4. Entrepreneur:- An entrepreneur can be defined as the factor of production that co-ordinates and organises other factors of production for more productive purposes. The entrepreneur is normally the person who risks his capital in establishing a business whose profitability can never be determined at that time. The reward for entrepreneur is profit or loss.
1b. The importance of factors of production includes:-
1. Improves the standard of living:- if business can improve the efficiency of the factors of production. It stands to reason that they can increase production and create higher quality goods at lower prices. Any increase in production leads to economic growth as measured by the GDP. This metric merely represents the total production of all goods and services in an economy. Improving economic growth and raising the standard of living by lowering cost and raising wages
2. Improvement and revision to the financial market:- where capital is sourced and allocated and of the labour market, this affecting investors and consumers alike. Here the factors of production influences the labour and financial market thereby enabling sustainable market with willing consumers creating an attractive investment opportunity.
3. Economic growth results from production since it enables customers purchase things and producers to generate more goods because, producing items for human consumption is the goal of production

Question 2
The three basic economic questions in an economy includes:-
1. What to produce
2. How to produce and,
3. For whom to produce

1. What to produce:-
Currently, the economy of Nigeria is a middle- income, mixed economy and emerging market with expanding manufacturing, financial, Service, technology and entertainment sector and each and every economy must determine what products and services and what volume of each, to produce. And as a mixed economy like Nigeria, choices is made by consumers and producers to find out what the society’s scarce resources will be utilize for.
2. The second question is how to produce:-
The basic economic problem is with regards to the mix of resources to use to create each good and services. In a mixed economy like Nigeria, these type of decisions are generally made by companies which attempts to create their products at lowest cost. By way of example, banking institutions have substituted the majority of their counter service individuals with automatic teller machines, phone banking and Net banking. These electronic ways of moving money, utilizing capital as oppose to labour resources, have decreased the bank’s production cost.
3 How to produce:- This formally explains “who gets” or deciding how to distribute what has been produced

NAME: Anigbo Mercy Ebele
REG NO:2020/249986
Pure and industrial chemistry

A.Factors of production is an economic concept that refers to the inputs needed to produce goods and services. The factors are land, labor, capital, and entrepreneurship.
1.Land:
Land is a broad term that includes all the natural resources that can be found on land, such as oil, gold, wood, water, and vegetation. Natural resources can be divided into renewable and non-renewable resources.

Renewable resources are resources that can be replenished, such as water, vegetation, wind energy, and solar energy.
Non-renewable resources consist of resources that can be depleted in supply, such as oil, coal, and natural gas.
All resources, whether it is renewable or non-renewable, can be used as inputs in production in order to produce a good or service. The income that comes from using land and its natural resources is referred to as rent.

Besides using its natural resources, land can also be utilized for various purposes, such as agriculture, residential housing, or commercial buildings. However, land differs from the other factors of production because some natural resources are limited in quantity, so its supply cannot be increased with demand.
2.Labor:
As a factor of production refers to the effort that individuals exert when they produce a good or service. For example, an artist producing a painting or an author writing a book. Labor itself includes all types of labor performed for an economic reward, such as mental and physical exertion. The value of labor also depends on human capital, which is determined by the individual’s skills, training, education, and productivity.

Productivity is measured by the amount of output someone can produce in each hour of work. The income that comes from labor is referred to as wages. Note that work performed by an individual purely for his/her personal interest is not considered to be labor in an economic context.
3.Capital or capital goods:
As a factor of production, refers to the money that is used to purchase items that are used to produce goods and services. For example, a company that purchases a factory to produce goods or a truck that is purchased to do construction are considered to be capital goods.

Other examples of capital goods include computers, machines, properties, equipment, and commercial buildings. They are all considered to be capital goods because they are used in a production process and contribute to the productivity of work. The income that comes from capital is referred to as interest.
4.Entrepreneurship:
Entrepreneurship as a factor of production is a combination of the other three factors. Entrepreneurs use land, labor, and capital in order to produce a good or service for consumers.

Entrepreneurship is involved with establishing innovative ideas and putting that into action by planning and organizing production. Entrepreneurs are important because they are the ones taking the risk of the business and identifying potential opportunities. The income that entrepreneurs earn is called profit.

B.Economic growth is the increase in the production of goods and services from one period to the next. As such, the value of these goods and services increases, resulting in larger corporate profits. It has a snowball effect, which often leads to higher stock prices and a rise in employment. Companies have more capital to invest in new ventures and consumers are able to spend more.

As such, economic growth is one of the most-watched indicators, if not the most important. Economists measure it in real terms, which factors in inflation, or in nominal terms.
C.The three basic questions are
What should we produce?
How should we produce it?
For whom should we produce it?
D.
1.What should we produce? Nigeria practices the mixed economy system.In Nigeria the government often sets guidelines and regulations for certain industries and products, while private businesses make decisions based on consumer demand and profitability.
How to produce: Both the government and private businesses can influence how goods and services are produced. The government may regulate production processes for health and safety reasons, while private businesses may use cost-saving techniques to maximize profits.
For whom to produce: In Nigeria where mixed economy system is practiced goods and services are produced for both consumers and the government. The government may fund or produce public goods and services, such as education and defense, while private businesses produce goods and services for consumers in exchange for payment.

Name: Mmamel Chinemeogo Claudia
Reg No: 2020/248644
Department: Nursing Science 100L
Course: Eco101

Question 1

What are factors of production?
Factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Land as a factor of production
Land includes any natural resource used to produce goods and services; anything that comes from the land. Some common land or natural resources are water, oil, copper, natural gas, coal, and forests. Land resources are the raw materials in the production process. These resources can be renewable, such as forests, or nonrenewable such as oil or natural gas.

Labor as a factor of production
Labor is the effort that people contribute to the production of goods and services. Labor resources include the work done by the waiter who brings your food at a local restaurant as well as the engineer who designed the bus that transports you to school. It includes an artist’s creation of a painting as well as the work of the pilot flying the airplane overhead. If you have ever been paid for a job, you have contributed labor resources to the production of goods or services.

Capital as a factor of production
Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans. Capital differs based on the worker and the type of work being done. For example, a doctor may use a stethoscope and an examination room to provide medical services. Your teacher may use textbooks, desks, and a whiteboard to produce education services.

Entrepreneurship as a factor of production
An entrepreneur is a person who combines the other factors of production – land, labor, and capital – to earn a profit. The most successful entrepreneurs are innovators who find new ways to produce goods and services or who develop new goods and services to bring to market. Without the entrepreneur combining land, labor, and capital in new ways, many of the innovations we see around us would not exist. Entrepreneurs are a vital engine of economic growth helping to build some of the largest firms in the world as well as some of the small businesses in your neighborhood. Entrepreneurs thrive in economies where they have the freedom to start businesses and buy resources freely.

Question 2
Why are they important to the economic growth of Nigeria?

The factors of economics are important to the economic growth in Nigeria because the are used to maximize profits, generate revenue and increase the production of goods and services in Nigeria. If businesses can improve the efficiency of the factors of production, it stands to reason that they can increase production and create higher quality goods at lower prices. Any increase in production leads to economic growth as measured by GDP.

Question 3

What are the three basic economic questions in any economy?

The three basic questions are
(1) What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services?

Question 4

Elaborate and give answers to them in the Nigerian Concept.

The three basic questions which need to be answered by an economic system are:

First: What to produce. This question aims at establishing the products that need to be produced in Nigeria . Nigeria has a diverse economy that produces a range of goods and services ,Depending on the market need, such products may include clothing, food, electronics, etc. Firms will produce that particular good into the economy with a higher demand and a decent price level.

Second: How to produce. It defines the way or method that Nigeria should adopt to manufacture the good. It answers questions like what tools will be required for manufacturing the goods or services. Nigeria’s economic structure and production techniques vary across sectors, with some sectors utilizing modern technology and others relying on traditional methods. Examples of these tools are land, machines, raw materials, etc.

Third: Whom to produce. This explains the target market for the goods or services. It elaborates to which class of the society should the goods or services be produced for in Nigeria. The end users of the goods or services are taken into consideration. The firm makes those goods or offers the services they feel will earn higher profits.

NAME-MBAEZE CHIDERA MARYCYNTHIA
REG NO-2021/248750
DEPARTMENT-ECONOMICS

1.Factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services.Factors of production also refer to the different elements that are used in producing goods and services.

2.Economic growth is the increase in the production of goods and services from one period to the next. As such, the value of these goods and services increases, resulting in larger corporate profits. It has a snowball effect, which often leads to higher stock prices and a rise in employment. Companies have more capital to invest in new ventures and consumers are able to spend more.Increased Productivity: By utilizing the available factors of production effectively, the Nigerian economy can produce more goods and services, resulting in increased productivity. This can lead to increased economic growth and development.
b.Employment Generation: The factors of production are essential in creating job opportunities for the Nigerian population. For example, the use of labor in agriculture and manufacturing sectors can create job opportunities for the country’s large population.
c.Improved Standard of Living: Efficient use of the factors of production can lead to increased production, which can translate into higher incomes and improved standards of living for Nigerians. This can help to reduce poverty and inequality in the country.
d.Increased Productivity: By utilizing the available factors of production effectively, the Nigerian economy can produce more goods and services, resulting in increased productivity. This can lead to increased economic growth and development.

3a.what to produce
b.how to produce it
c.who to produce it for.

4a.What to produce: This question refers to the types of goods and services that Nigeria should produce to meet the needs and wants of its population. Nigeria has a diverse economy that produces a range of goods and services, including oil, agricultural products, textiles, and services such as banking, telecommunications, and transportation.
b.how to produce it:This question refers to the methods and techniques that Nigeria should use to produce goods and services. Nigeria’s economic structure and production techniques vary across sectors, with some sectors utilizing modern technology and others relying on traditional methods.
c.who to produce it for:This question refers to the distribution of goods and services produced in Nigeria among its population. Nigeria has significant income inequality, with a significant proportion of its population living in poverty. Therefore, addressing this question is crucial in ensuring that the benefits of economic growth are shared equitably among all Nigerians.

NAME: ONYEJEAKA OLUEBUBE ADAKU
REG NO: 2020/246940
DEPARTMENT: NURSING SCIENCE
COURSE CODE:ECO 101
EMAIL : oluebubeonyejeaka@gmail.com

1.Factors of Production are the resources that are used in the production of goods and services in an economy. The four factors of production are land, labor, capital, and entrepreneurship.

Land:refers to all natural resources used in production such as soil, water, forests, and minerals.
Labor: is the human effort used in production.
Capital: refers to all man-made resources used in production, such as machines, tools, and buildings. Entrepreneurship:is the ability to organize and manage the other factors of production to produce goods and services.

2.Factors of Production are important to the economic growth of Nigeria because they determine the country’s ability to produce goods and services, which in turn affects the country’s economic growth. If any of the factors of production are lacking or inefficiently utilized, the country’s economic growth may be hindered.

3.The three basic economic questions in any economy are:
What to produce?
How to produce?
For whom to produce?
In the Nigerian context, the answers to these questions may vary depending on the specific needs and priorities of the country. However, generally speaking, the answers could be as follows:

. What to produce? – Nigeria may focus on producing goods and services that it has a comparative advantage in, such as oil and gas, agriculture, and services. Additionally, the country may prioritize the production of goods and services that are in high demand domestically and internationally.
. How to produce? – Nigeria may need to consider various factors such as the availability of resources, technology, and labor skills when deciding how to produce goods and services. The country may also need to invest in infrastructure and technology to improve the efficiency of production processes.
. For whom to produce? – Nigeria may need to ensure that goods and services are produced for all members of society, not just a select few. The country may need to consider issues such as income inequality and access to essential goods and services when making production decisions.
In conclusion, the factors of production are essential to the economic growth of Nigeria, and the answers to the three basic economic questions will help guide the country’s production decisions and promote inclusive economic growth.

Name: Chibudom Ironuru
Matric no: 2021/241955
Department: Economics
Level: 100 Level
Course: Principles of Economics (ECO 101)

CONTINUOUS ASSESSMENT

FACTORS OF PRODUCTION
Factors of production are resources or agents (human or otherwise) that possess productive power and therefore, contribute to the production of goods and services and reward are given to their owners. There are four factors of production namely;
1.) Land
2.) Capital
3.) Labour
4.) Entrepreneur

1.) LAND: Land is a fixed factor of production. It is referred to as fixed, because it’s supply cannot be easily increased in a short run period. Land is a naturally occurring factor. That is to say, human actions did not bring about it’s existence. Human actions can improve its quality, but they can’t bring it into existence. It is used either as the setting upon which the production process is to take place (e.g Factories) or as the resource from which the commodities produced are extracted (in the case of farms or mines). The reward given to owners of land is known as “rent”.
2.) CAPITAL: Capital refers to the assets which are used to produce goods and services. Examples of capital includes tangible assets such as machinery and buildings and also intangible assets such as stocks, bonds, etc. The reward for capital is “interest”.
3.) LABOUR: This refers to the employees that are employed to utilize the land and capital to produce the goods or services of the firm. This is probably the most important factor seeing as it is next to impossible to produce any good or service without human labour. Even as technology continues to advance, it is still very hard for it to completely replace human labour. Most often, it improves it. The reward for labour is “wage”.
4.) ENTREPRENEUR: An entrepreneur is a person who starts a business and takes on the risks that come with running that business, in the hopes of making a profit (the reward of an entrepreneur).

IMPORTANCE OF FACTORS OF PRODUCTION TO ECONOMIC GROWTH IN NIGERIA
Factors of production are important to economic in Nigeria, because without them, there can be no production. And without production, there is no economy. It is important that the productive power of each factor of production is enhanced so as to improve economic growth in the country.
LAND: Land of course contributes in different ways to the Nigerian economy. It contributes through the agricultural sector, it contributes through the mining sector, etc. With Nigeria having 34 million hectares of arable land and many large deposits of mineral resources, land contributes a lot to the growth of the Nigerian economy and has the potential to contribute a lot more.

CAPITAL: Capital is very necessary for the growth of the Nigerian economy, especially in the case of the industrial sector. With increased capital investment both foreign and domestic, capital can go a long way to improve the rate of growth of the Nigerian economy.

LABOUR: With a labour force of roughly 80 million, Nigeria has immense potential for economic growth. This can be actualized if more resources are out into human capital development so as to enhance the the productive capacity of Nigeria’s labour.

ENTREPRENEUR: With roughly half of Nigeria’s GDP and 85 percent of industrial employment in Nigeria being accounted for by MSMEs, it is clear that entrepreneurs contribute greatly to economic growth in Nigeria.

BASIC ECONOMIC PROBLEMS
A.) What to Produce
B.) How to Produce
C.) For Whom to Produce

WHAT TO PRODUCE: This is the problem of choosing which goods and services should be produced in an economy and which should be foregone. In Nigeria, more attention is given to the production of primary goods such as Crude oil, Cash crops, etc at the expense of industrial goods. This decision is based on mainly on Nigeria’s vast endowments of natural resources and lack of adequate infrastructural and industrial development.
HOW TO PRODUCE: This is the problem of deciding how the goods and services which have been chosen for production are to be produced. That is to say, deciding what techniques are to be used in the production process. In Nigeria, due to its large population and comparatively low technological and educational development, the process for the production of goods and services tends to be labour-intensive rather than capital-intensive. And this use of labour-intensive methods in so many sectors has hampered economic growth as compared to more developed nations. This leading to the slow but sure increase in the use capital-intensive methods in the country.
FOR WHOM TO PRODUCE: This is the problem of deciding which consumers should production be directed at. Seeing as Nigeria is a mixed economy, the private sector and the public sector decide whom to produce for in different ways. The private sector so as to maximize profit focuses mainly in those with comparatively high purchasing power as opposed to those with low purchasing power. On the other hand, the public sector tends to be more inclusive when deciding whom to produce for. This is because the goods and services produced by the public sector tend to be social amenities which are important for improving the standard of living of the masses.

Isienyi Abumchukwu Treasure
2020/242950
BCH option in Science Laboratory Technology
18/04/2023

Question 1:
Factors of production are the resources required to produce goods and services. These factors include:
(A) Land: This refers to all natural resources such as oil, gas, forests, water, minerals, and agricultural land. In Nigeria, the country is rich in natural resources, with oil being the most significant.
(B) Labour: This refers to the physical and mental efforts of people involved in the production process. In Nigeria, the country has a large population and a significant workforce in various sectors such as agriculture, manufacturing, and services.
(C) Capital: This refers to the tools, machinery, equipment, and infrastructure used in production. In Nigeria, the country has been investing in infrastructure such as roads, ports, and airports to improve its production capabilities.
(D) Entrepreneurship: This refers to the ability to identify opportunities, take risks, and organize the other factors of production. In Nigeria, the country has a growing number of entrepreneurs who are starting new businesses and driving economic growth.

Question 2.
The factors of production are crucial to the economic growth of Nigeria for several reasons:
(A) Increased Productivity: By utilizing the available factors of production effectively, the Nigerian economy can produce more goods and services, resulting in increased productivity. This can lead to increased economic growth and development.
(B) Employment Generation: The factors of production are essential in creating job opportunities for the Nigerian population. For example, the use of labor in agriculture and manufacturing sectors can create job opportunities for the country’s large population.
(C) Improved Standard of Living: Efficient use of the factors of production can lead to increased production, which can translate into higher incomes and improved standards of living for Nigerians. This can help to reduce poverty and inequality in the country.
(D) Attraction of Investment: A country with abundant and well-utilized factors of production can be attractive to foreign investors, leading to increased investment and economic growth in Nigeria.
In conclusion, the factors of production are essential in creating wealth, generating employment, and improving the standard of living for Nigerians. Therefore, their efficient use is crucial for the economic growth and development of Nigeria.

Question 3:
(A) What to produce: This question refers to the types of goods and services that Nigeria should produce to meet the needs and wants of its population. Nigeria has a diverse economy that produces a range of goods and services, including oil, agricultural products, textiles, and services such as banking, telecommunications, and transportation.
(B) How to produce: This question refers to the methods and techniques that Nigeria should use to produce goods and services. Nigeria’s economic structure and production techniques vary across sectors, with some sectors utilizing modern technology and others relying on traditional methods.
(C) For whom to produce: This question refers to the distribution of goods and services produced in Nigeria among its population. Nigeria has significant income inequality, with a significant proportion of its population living in poverty. Therefore, addressing this question is crucial in ensuring that the benefits of economic growth are shared equitably among all Nigerians.

1. Factor of production or input are requirements used in producing output and they include land, labour and capital.
2. They are important to the economic growth in Nigeria because the are used to maximize profits, generate revenue and increase the production of goods and services in Nigeria.
3. What goods and services should be produced to meet consumer needs?
How should they be produced and who should produce them?
Who should receive them?
4. The goods that should be produced will be the goods that is required to satisfy the consumer’s need.
They should be produced by the transformation of raw materials into finished goods. And they are done using the appropriate machine and factor(labour and capital) in the production of the goods. For instance, production of textile can be done using
handloom or machine-based.
The people who need the goods (consumers) will receive the the goods and services.

Name: Ugwu Onyekachukwu Samuel
Department: Public Administration and local government
Reg Number: 2021/242146
Email Address: onyekaugwu406@gmail.com
Date:17-04-2023

(1) What are factors of production?

Factors of production are the resources or inputs that are required to produce goods and services. They are usually classified into four categories:

(a) Land: This refers to all natural resources, such as land itself, water, minerals, oil, and forests. It includes both renewable and non-renewable resources.

(b) Labour: This refers to the physical and mental effort of human beings that is used to produce goods and services. It includes both skilled and unskilled labour.

(c) Capital: This refers to the tools, machines, buildings, and other physical assets that are used to produce goods and services. It includes both financial capital (such as money invested in a business) and physical capital (such as machinery and equipment).

(d) Entrepreneurship: This refers to the ability of individuals to combine the other three factors of production in a creative way to produce new goods and services, create new markets, and develop new production methods.

All four factors of production are necessary to produce goods and services in an economy. The efficiency with which these factors are used determines the productivity of an economy.

(2) Why are they important to the economic growth of Nigeria?

The factors of production are essential inputs that are used in the production of goods and services in any economy. They include land, labor, capital, and entrepreneurship. These factors play a crucial role in the economic growth of Nigeria, as they contribute to the country’s ability to produce more goods and services, increase employment, and generate income.

Here are some reasons why the factors of production are important to the economic growth of Nigeria:

(a) Land: Land is a vital factor of production as it provides the natural resources needed for production. In Nigeria, land is used for agriculture, mining, and other industries. The availability and quality of land can impact the production capacity of the economy, which can, in turn, affect economic growth.

(b) Labour: Labour is an essential factor of production as it represents the workforce that is required to produce goods and services. The size and quality of the labour force in Nigeria impact the productivity and efficiency of the economy. Adequate investment in education, training, and healthcare can improve the quality of labor and contribute to economic growth.

(c) Capital: Capital represents the machinery, equipment, and infrastructure required for production. Investment in capital can increase the efficiency of production and contribute to economic growth. In Nigeria, investment in capital is necessary to improve infrastructure, such as roads, railways, and power supply, which can increase the productivity of the economy.

(d) Entrepreneurship: Entrepreneurship represents the ability to innovate, take risks, and create new businesses. In Nigeria, entrepreneurship is vital for economic growth as it leads to the creation of new industries and the development of new products and services. Encouraging entrepreneurship through policies that support small and medium-sized enterprises can lead to job creation and economic growth.

In conclusion, the factors of production play a crucial role in the economic growth of Nigeria. A focus on improving the quality and availability of these factors can contribute to increased productivity, job creation, and income growth.

What are three basic economic questions in any economy?

The three basic economic questions that are relevant to any economy are:

What to produce?
How to produce?
For whom to produce?
These questions are fundamental to every economic system and provide a framework for understanding how resources are allocated and how goods and services are produced and distributed.

(a) What to produce?
This question refers to the goods and services that will be produced by the economy. It involves determining the needs and wants of the consumers, the available resources, and the technology that is available for production. In a market economy, this question is largely determined by the choices of individual consumers and businesses, while in a command economy, it is decided by the government.

(b) How to produce?
This question refers to the methods and techniques that will be used to produce the goods and services that are needed by the economy. It involves decisions about the allocation of resources and the use of technology. In a market economy, the methods of production are determined by businesses seeking to maximize profits, while in a command economy, the government decides how resources will be allocated.

(c) For whom to produce?
This question refers to the distribution of goods and services within the economy. It involves determining who will receive the goods and services that are produced. In a market economy, this question is largely determined by the ability of consumers to pay for goods and services, while in a command economy, the government determines who will receive the goods and services.

In the Nigerian context, the basic economic questions can be answered as follows:

(a) What to produce?
Nigeria is a resource-rich country with a variety of natural resources, including oil, gas, solid minerals, agriculture, and human resources. The country produces a range of goods and services, including crude oil, petroleum products, natural gas, agricultural products, manufacturing goods, and services. However, the country’s heavy reliance on crude oil exports has made it vulnerable to the volatility of the global oil market. Therefore, there is a need for diversification of the economy to reduce reliance on oil exports and increase the production of other goods and services that can sustain economic growth.

(b) How to produce?
The Nigerian economy is largely market-driven, with private enterprise being the main driver of economic growth. However, the government also plays a role in promoting economic development by creating a conducive business environment, providing infrastructure, and implementing policies that promote economic growth. The country has adopted various strategies to increase productivity and efficiency, including privatization, public-private partnerships, and the use of technology.

(c) For whom to produce?
Nigeria has a population of over 200 million people, with a significant portion living below the poverty line. Therefore, there is a need to ensure that economic growth is inclusive and benefits all segments of the population. The government has implemented various poverty reduction programs and social safety nets to support the most vulnerable in society. Additionally, the country is working towards achieving the Sustainable Development Goals (SDGs) to address social and economic inequalities and promote sustainable development.