The four factors of production are land, labor, capital, and entrepreneurship
. These resources are essential for creating goods and services in an economy
- Land Encompasses natural resources like minerals, water, forests, and the land itself
. It is often considered a fixed factor due to its limited supply
- Labor Refers to the effort people put into producing goods and services, including their skills and time
. It is a variable factor that can be increased or decreased based on production needs
- Capital Includes physical assets like machinery, equipment, tools, buildings, and infrastructure used in production
- Entrepreneurship Involves organizing, coordinating, and taking risks in the production process. Entrepreneurs identify opportunities, allocate resources, make strategic decisions, and manage the uncertainties of starting and running a business
