Factors of Production
Investopedia (reference below) defines factors of production as the inputs that are used in the production of goods or services in the attempt to make an economic profit.
Investopedia goes on to say:
“The factors of production include land, labor, capital and entrepreneurship.
In essence, land, labor, capital and entrepreneurship encompass all of the inputs needed to produce a good or service. Land represents all natural resources, such as timber and gold, used in the production of a good. Labor is all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all other factors of production. The entrepreneur also takes on all of the risks and rewards of the business. The capital is all of the tools and machinery used to produce a good or service.”
Atlas topic, subject, and course
Investopedia, Factors of Production, at http://www.investopedia.com/terms/f/factors-production.asp, accessed 19 May 2016.
Page created by: Ian Clark, last modified 19 May 2016.