What are the sources of production? Explain each in short
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Land, labor, and capital as factors of production were originally identified by the early political economists such as Adam Smith, David Ricardo, and Karl Marx. Today, capital and labor remain the two primary inputs for the productive processes and the generation of profits by a business.
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Land, labor, and capital are factors of production.
- LAND: the part of the earth's surface that is not covered by water.
- LABOR: Childbirth, the process of delivering a baby and the placenta, membranes, and umbilical cord from the uterus to the vagina to the outside world.
- CAPITAL: machinery, tools and buildings humans use to produce goods and services. Some common examples of capitalinclude hammers, forklifts, conveyer belts, computers, and delivery vans.Capital differs based on the worker and the type of work being done.
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