describe the four factors of the production
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Economists divide the factors ofproduction into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. ... Land resources are the raw materials in the production process.
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There are four factors of production ÷
1. The first requirement is land and other natural resources such as water , forests. minerals.
2. The second requirement is labour , i.e. people who will do the work . Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do manual work. Each worker is providing the labour necessary for production .
3. The third requirement is physical capital.
(a) Tools, machines, buildings
(b) Raw material and money in hand
4. There is fourth requirement too. We will need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output . This these days is called human capital
1. The first requirement is land and other natural resources such as water , forests. minerals.
2. The second requirement is labour , i.e. people who will do the work . Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do manual work. Each worker is providing the labour necessary for production .
3. The third requirement is physical capital.
(a) Tools, machines, buildings
(b) Raw material and money in hand
4. There is fourth requirement too. We will need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output . This these days is called human capital
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