Briefly explain the factors of production and give an example of each.

What will be an ideal response?


The resources, which are the inputs used in the production of the things that we want,used in production are called factors of production. There are five factors of production. Land encompasses all the nonhuman gifts of nature, including timber,water, fish, minerals, and the original fertility of land. It is often called the natural resource. Labor is the human resource, which includes productive contributions made by individuals who work, such as Web page designers, ballet dancers, and professional football players. Physical capital consists of the factories and equipment used in production. It also includes improvements to natural resources, such as irrigation ditches. Human capital is the economic characterization of the education and training of workers. An example is a worker’s skills. Entrepreneurship is the component of human resources that performs the functions of organizing, managing, and assembling the other factors of production to create and operate business ventures.