Factors of Production
Production requires resources to productive activity. Resources that are used for production, known as the factors of production are split into the folowing four categories:
LAND
Natural resources. Includes oceans, land, even animals for their meat or coat.
LABOUR
Most productions have to be produced with the aid of people. People provides effort to produce goods and services, they work physically and mentally to provide human resources for production.
ENTERPRISE
While most people contribute physical and mental effort for production, people who manage firms are entrepreneurs. They make decisions for firms (organization that owns factories) in order for productions to run successfully.
CAPITAL
They are basically tools to make the task of production easier. These tools are man-made, including machineries. Man-made resources which aids the production of goods and services are known as capital.
