Understanding Economic Factors of Production
Classified in Economy
Written on in
English with a size of 1.96 KB
Economic Factors of Production and Income
Factors of Production Defined
- Land (including natural resources): All the "gifts of nature" that we use to produce goods and services.
- Labor: The work time and work effort that people devote to producing goods and services.
- Capital: Consists of tools, instruments, machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services.
- Entrepreneurship: The human resource that organizes labor, land, and capital. This involves coming up with new ideas about what and how to produce, making business decisions, and bearing the risks that arise from these decisions.
Human Capital
Human Capital is the knowledge and skill that people obtain from education,... Continue reading "Understanding Economic Factors of Production" »