The four factors of production
Factors of production refers to the resources that are directly used in the production of goods or services for the aim of making profit. In economics, there are four factors of production that used in production process which are land, labour, capital and entrepreneurial talent. Land Land as a factor of production involves all natural resources found in it that can be used in production of goods or services. Such of natural resources found in land include soil, water, air, fuels and forests. Land is very important in production process as it provides raw materials used in manufacturing of products, but also it provides space for setting up the site for production structure. Some natural resources found in land are renewable water and minerals and some others are non-renewable such as fuels and forests. Labour Labour involves human physical and mental efforts used in production process. Labour can be skilled or unskilled. Skilled labour are experts and usually limited and expensive to ...