Consider the following: 'Dangerous levels of industrial air pollution in India reduce life

expectancy by seven years for 40% of its population. This refers to the people living
in the states of the Indo- gangetic plain, where pollution has increased by 72% in a
period of 18 years. The population of Delhi faces an average loss of 10.2 years. The
public is outraged. The government has begun to respond to this public health
emergency'.
3a) Research an example of a challenge India faces and outline how it is a threat to
sustainable development.
Indian cities are overflowing with urban waste, both toxic as well as household, their
rivers are polluted with sewage and industrial effluents, and there are several reports
which show the contamination of fresh vegetables by heavy metals from dirty irrigation
water.
Simultaneously, India faces serious threats from climate change. Climate change is
impacting the natural ecosystems and is expected to have substantial adverse effects
in India mainly on agriculture. Water storage in the Himalayan glaciers is the source of
major rivers and groundwater recharge and uncertainty in water flows owing to climate
change will have deep impacts. Climate change will impact India's food security, water
security, cause health impacts, and make coastal population vulnerable.

b) Describe how India's rapid economic growth impacts its future generations.
 Brain drain

1a) Outline why resources are also called "factors of production'.

Simply put, resources are the inputs used to produce outputs (goods and/or
services). Resources are also called factors of production. What makes something a
resource? For one thing, it needs to be productive.
b) Identify the four factors of production.
Economists divide the factors of production into four categories: land, labor, capital,
and entrepreneurship.
What are some examples of 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.
What are some examples of 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.
What are some examples of 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.
What are some examples of 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.
2. Outline how physical capital differs from the other three factors of production.
Physical capital refers to tangible assets used to develop or build final goods and
services. It is an essential element for most manufacturing processes. Unlike human
capital, its value can diminish over time because of the continuous use of physical
items, such as machines, equipment, vehicles, computers, buildings, etc., in
production.
3. Describe why entrepreneurship is considered to be a factor of production separate
from labour.
Entrepreneurs are innovators who find new ways to produce goods and services or
who develop new goods and services to bring to market. Entrepreneurship
involves taking on risk and organizing production through establishing new
businesses and exploring new ideas and new products. Simply put,
entrepreneurship is brain labor and also often physical labor, while labor is brawn
and usually associated with physical activity.

Labor is a factor of production and is needed to get many tasks done not just the
ones we typically associate with physical labor. Even if we are doing work such as
working on a laptop, this takes a degree of physical activity but we usually think
about heavy lifting or the like.

Labor has been considered a factor of production in all schools of economic

thoughts. Basically, labor is “human effort used in production which also includes
technical and marketing expertise”. Because of this vagueness, it is easy to confuse
between “labor” and “entrepreneurship”. But we must realize that the definition of
entrepreneurship in the field of economics and business is different!

In economics, labor refers to the physical work done to produce goods or services
and entrepreneurship refers to the innovations devised to produce goods or services.
This is the essential difference between the two.
4a) Identify the various meanings of the term 'capital'.
Capital is a broad term that can describe anything that confers value or benefit to its
owners, such as a factory and its machinery, intellectual property like patents, or
the financial assets of a business or an individual. While money itself may be
construed as capital, capital is more often associated with cash that is being put to
work for productive or investment purposes.

b) Outline what they have in common.

In general, capital is a critical component of running a business from day to day and
financing its future growth. Business capital may derive from the operations of the
business or be raised from debt or equity financing. When budgeting, businesses of
all kinds typically focus on three types of capital: working capital, equity capital, and
debt capital. A business in the financial industry identifies trading capital as a fourth
component.