FACTORS

OF
PRODUCTION
FACTORS OF
PRODUCTION are those
resources needed to
produce goods and
services. There are
FOUR factors:
a)Land
b)Labour
c) Capital
d) Enterprise.
 LAND refers to all
natural resources found
on the earth.
Examples:
Space to construct a
building, wood, water,
fish, crude oil, minerals,
metals, etc
 LABOUR means the
physical and mental effort
of people in the
production of goods or
services
Examples:
Designers, engineers,
doctors, teachers,
technicians, computer
operators, etc.
CAPITAL refers to all non-
natural resources that are
used in production
Examples:
Money, buildings,
machines, furniture,
computer, vehicles, etc.
.
 ENTERPRISE also known as
entrepreneurship refers to the
management, organization
and planning of the other
three factors of production
Examples:
Chief Executive Officer [CEO],
Principal, Section Coordinator,
Senior Managers, etc.