The factors of production are the building blocks of economics. These are the 4 stages of going through production. They are:
- Land:
This is all the land that is used in producing a product. This includes all the natural resources mined and all the land build on. Land resources are raw materials in the production process. Examples of these are water, oil, copper, natural gases etc.
- Labour:
This is all the people who have worked towards making a product. This can be the miners who worked on the land for resources or people who worked to make the product.
- Capital:
These are all the machines, tools and buildings used to create the product or service. This can be any machines or tools used along the production line from pickaxes to computers.
- Enterprise:
This is using all the other factors of production to make a profit from the product or source. Entrepreneurs are people who bring these products to the market and find different ways of making a profit from them. This means that an example of enterprise could be advertising.
- Land:
This is all the land that is used in producing a product. This includes all the natural resources mined and all the land build on. Land resources are raw materials in the production process. Examples of these are water, oil, copper, natural gases etc.
- Labour:
This is all the people who have worked towards making a product. This can be the miners who worked on the land for resources or people who worked to make the product.
- Capital:
These are all the machines, tools and buildings used to create the product or service. This can be any machines or tools used along the production line from pickaxes to computers.
- Enterprise:
This is using all the other factors of production to make a profit from the product or source. Entrepreneurs are people who bring these products to the market and find different ways of making a profit from them. This means that an example of enterprise could be advertising.