Introduction

To make any goods or services, we need certain resources. Economists call these resources the factors of production. They are the building blocks of the economy. Without them, nothing can be produced.

1. Land

• Land means all natural resources we get from nature.

• Examples: farmland, water, forests, oil, coal, minerals.

2. Labour

• Labour means the human work and effort used in production.

• Examples: doctors, farmers, teachers, builders, chefs.

3. Capital

• Capital means man-made tools, machines, and buildings used in production.

• Examples: factories, tractors, computers, transport systems.

4. Enterprise

• Enterprise is the skill of bringing together land, labour, and capital to start and manage a business.

• Entrepreneurs take risks and make important decisions.

• Example: a shop owner or company founder.