Question
What are the 4 factors of production?
Answer
4.1
(217 Votes)
Ylva
Professional · Tutor for 6 years
Answer
The 4 factors of production are Land, Labor, Capital, and Entrepreneurship.
Explanation
In economics, the factors of production are the resources used to produce goods and services. There are four major categories of factors of production:1. **Land**: This includes all natural resources that are used in the creation of goods and services. It encompasses everything from agricultural land to the raw materials extracted from the ground.2. **Labor**: This refers to the human effort, both physical and mental, used in the production process. It includes work done by employees, workers, and managers.3. **Capital**: This consists of the machinery, tools, buildings, and technology used in producing goods and services. It is not money itself but is significant in generating money.4. **Entrepreneurship**: This is the initiative to combine the other factors of production into a productive enterprise. Entrepreneurs take the risks necessary to develop new products and start new businesses.