Factors of production

What are the factors of production

Are resources required to produce goods and services in an economy

-Capital

-Enterprise

-Land

-Labour

What is Land as a factors of production and what’s its reward

All natural resources in the economy

-The Reward for offering land as use is rent

Examples:Plants and animals we farm, resources we take from sea,Timber,coal,fish,gold

What is Labour as a factor of production and what’s its reward

Human input into producing goods and services

The reward for labour is Wages

What does Labour depend on?

Size and age of the population, working age in an economy and impact of migration,quality of workforce and health of population

What is Capital as a factor of production?

Refers to man-made aids to production E.g Machines,Infrastructure and Technology,factories

-The reward for offering capital is interest

What is Enterprise as a factor of production and what’s the reward.

When something takes a risk and combines other three factors of production to produce a good or service E.g entrepreneur

-The reward for offering enterprise for use is profit