What are the factors of production?
Factors of production are the resources that are used to produce goods and services. 1.Natural resources: The things created by acts of nature such as land, water, mineral, oil and gas deposits, renewable and nonrenewable resources. 2.Labor: The human effort, physical and mental, used by workers in the production of goods and services.
3.Human capital: The knowledge and skills acquired by a worker through education and experience.
4.Physical capital: All the machines, buildings, equipment, roads and other objects made by human beings to produce goods and services.
5.Entrepreneurship: The effort to coordinate the production and sale of goods and services. Entrepreneurs take risk and commit time and money to a business without any guarantee of profit.
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