Factors of Production

Factors of production

The economic resources used to produce goods and provide services

Land

All the natural resources available in a country for the use in the production of goods and services, such as agricultural land, seas, forests and mineral wealth.

The economic return for land is rent

Labour

All the workers who are available in a country to help produce goods and services, such as builders, factory workers and food scientists

The economic return for labour is wages

Capital

All the human-made resources that are available in a country to help produce goods and services, such as equipment, machines, vehicles and buildings.

The economic return on capital is interest

Enterprise

The actions of the person or business that brings together the land, labour and capital to produce goods and services.

The hoped-for economic return for enterprise is profit