Factors of production are the basic resources used to produce goods and services. There are four main types:
1. Land
All natural resources like soil, water, minerals, forests, etc.
Anything that comes from nature and is used in production.
2. Labour
Human effort (both physical and mental) used in production.
Includes workers, employees, and professionals.
3. Capital
Man-made resources used to produce other goods and services.
Includes tools, machinery, buildings, equipment (not money—money is just a medium of exchange).
4. Entrepreneurship
The person or group who organizes land, labour, and capital to produce goods.
Entrepreneurs take risks, make decisions, and drive innovation.
Some economists also talk about a fifth factor:
➡️ Knowledge or Technology
Especially in modern economies, know-how and technology are crucial.
IN this i learned about Land , Labour , Captial , Entrepreneurship and how they work?
