FACTORS OF PRODUCTION

- is defined as the resources such as land, labour, capital and enterprise, which when
combined together in their correct proportions, result in an output of goods and
services.
THE FOUR (4) MAIN FACTOURS OF PRODUCTION
1. Land
2. Labour
3. Capital
4. Enterprise

LAND/ NATURAL RESOURCES/ FREE GIFTS FROM NATURE/ GIFTS FROM

GOD
Examples: water, natural gas, animals, trees, flowers

LABOUR
Includes all the mental and physical effort of workers.

CAPITAL/ PRODUCER GOODS MAN MADE RESOURCES

Capital is more than just money. It comprises all the assets in a firm that will speed up
production and help workers to perform tasks that might be impossible as human beings
alone.
Examples: machines, vehicles, computers, photocopying machines, building etc..

ENTERPRISE/ ENTERPRENEUR
The person(s) who bears risk by starting a business and brings together the other three(3)
factors in their correct proportions.