![]() Land, labor, capital, and entrepreneurship are the four production factors. To accomplish this, the input will go through a manufacturing process and various stages before reaching the hands of consumers. The term "production" in the context of factors of production refers to the process of transforming inputs into outputs, which are finished products that can be sold as a good or service. The four factors include the resources needed to produce a good or service, as measured by a country's gross domestic product (GDP). Land, labor, capital, and entrepreneurship are the factors. Economists classify production factors into four categories: land, labor, capital, and entrepreneurship.įactors of production are the inputs required to produce goods and services in the economy. In this section, we will learn about the production factors.įactors of production are the resources that people use to produce goods and services they are the foundation of the economy. These are the raw materials that are transformed into finished goods such as chairs and tables. These woods and iron are production factors. The iron chair started out as a piece of iron. ![]() How does one obtain wood? Of course, they come from trees. ![]() What materials are used to make the iron chair? How is the wooden table constructed? You are aware that wooden furniture is made of wood. Does it ever occur to you how these things are made? What are you going to see? Tables, chairs, other furniture, doors, televisions, wardrobes, and a plethora of other man-made items. ![]()
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