Factors of production

Question 1

What are the 4 factors of production?

Answer 1

Land
Labour
Capital
Enterprise

Question 2

Land

Answer 2

This refers to natural resources and includes not only the surface of the earth but all other natural resources discovered within it (e.g. oil, fish, coal, iron ore, crops and trees)

Question 3

Labour

Answer 3

This refers to human resources (e.g. employees who work for the business)

Question 4

Capital

Answer 4

This refers to human-made resources (e.g. buildings, machinery and equipment used in the production process)

Question 5

Enterprise

Answer 5

This is the art of bringing together the other factors or production in order to produce goods and services. The entrepreneur is the risk taker.