Four Factors of Production

Question 1

What are the four factors of production?

Answer 1

Land, labour, capital and entrepreneurship

Question 2

What is land? Give examples

Answer 2

Any natural resources used to produce products. Eg) Ore, wood, natural gasses

Question 3

What is labour? Give examples

Answer 3

Any effort put in to produce good and services eg. Unskilled, skilled, mental, physical

Question 4

What is capital? Give examples

Answer 4

Machinery and technology used to produce goods and services eg. Computer, machine, company car

Question 5

What is entrepreneurship? Give examples

Answer 5

Anyone with innovative ideas who combine land labour and capital to create their business. eg. Bill Gates, Steve Jobs, Elon Musk