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Factors of production
Economic resources used to produce goods and services: land, labour, capital, and enterprise.
Role of entrepreneurs
Bring together land, labour, and capital to make a profit by taking risks and innovating.
Capital
Physical goods used in production. Fixed capital: machines and buildings. Working capital: finished or semi-finished consumer goods. Reward: interest.
Entrepreneurship
Managerial ability to organise factors of production, innovate, and take risks. Reward: profit.
Land
Natural resources like oil, coal, wheat, water, or space for fixed capital. Reward: rent.
Labour
Human capital, including managers and employees who work in the economy. Reward: wages.