What is a factor of production in economics?

Factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. What are some examples of land as a factor of production?

What are the characteristics of capital as a factor of production?

The income that comes from capital is referred to as interest. Below are several defining characteristics of capital as a factor of production: Capital is different from the first two factors because it is created by humans. For example, capital goods like machines and equipment are created by individuals, unlike land and natural resources.

What are the four factors of production?

This transcript discusses the four factors of production: land, labor, capital, and entrepreneurship. Land refers to natural resources, while labor is the work that goes into production. Capital is the tools and buildings used to produce things, and entrepreneurship is the know-how of putting it all together.