Quick Definition

Factors of production are the resources used to create goods and services in an economy, typically categorized into land, labor, capital, and entrepreneurship.

Examples

• 1A farmer using land to grow crops, employing workers (labor), using tractors (capital), and managing the farm efficiently (entrepreneurship).
• 2A tech company using a leased office space (land), software developers (labor), computers and servers (capital), and innovative business strategies (entrepreneurship).
• 3A restaurant using a downtown location (land), chefs and waitstaff (labor), kitchen equipment (capital), and unique menu creation (entrepreneurship).

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