Factors of production are inputs into the production process. They are the resources needed to produce
goods and services. The factors of production are:
• Land includes the land used for agriculture or industrial purposes as well as natural resources
taken from above or below the soil.
• Capital consists of durable producer goods (machines, plants etc.) that are in turn used for
production of other goods.
• Labor consists of the manpower used in the process of production.
• Entrepreneurship includes the managerial abilities that a person brings to the organization.
Entrepreneurs can be owners or managers of firms.
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