Question

In 3-5 sentences, describe the factors of production. (4 points)

Answer 1

The factors of production are the essential resources used to create goods and services, which include land, labor, capital, and entrepreneurship. Land refers to all natural resources obtained from the earth, such as minerals, water, and fertile soil. Labor encompasses the human effort and skills involved in production, while capital represents the machinery, tools, and financial resources necessary for manufacturing goods. Finally, entrepreneurship involves the innovation and risk-taking required to combine these resources effectively to produce goods and services that meet societal needs.