What Are The Four Factors Of Production

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What Are The Four Factors Of Production

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Factors of production is an economic concept that refers to the inputs needed to produce goods and services The factors are land labor capital and entrepreneurship The four factors consist of resources required to create a good or service which is measured by a country s gross domestic product GDP Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.

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What Are The Four Factors Of ProductionEconomists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines. There are four basic resources or factors of production land labour capital and entrepreneur or enterprise The factors are also frequently labeled producer goods or services to distinguish them from the goods or services purchased by consumers which are frequently labeled consumer goods

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