What are the factors of production?


Factors of production are inputs into the production process. They are the resources needed
to produce goods and services. The factors of production are:
1. Land includes the land used for agriculture or industrial purposes as well as
natural resources taken from above or below the soil.
2.  Capital consists of durable producer goods (machines, plants etc.) that are in
turn used for production of other goods.
3. Labor consists of the manpower used in the process of production.
4. Entrepreneurship includes the managerial abilities that a person brings to the
organization. Entrepreneurs can be owners or managers of firms.

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