Economics

What are the four factors of productions?
The four factors are Land, Labour, Capital and Entrepreneur. Land is all the natural resources that have come from the Earth. An example of land is an apple. Labour is all the work we humans put into creating something. An example of this is a builder. Capital is the equipment used to create the product, normally bought from other capital business. An example of this is a saw. Entrepreneurs are the people who create the ideas that then earn income from what they have created. An example of this is a business.

The production process is the way that something is being made. For example a house. to make a house you need natural resources like wood, stone, cement etc. then you need labour which is people like builders and architects, you also need entrepreneurship. Entrepreneurship in this example is how people build the house. Then you need equipment to make the product which comes under capital. Next, you would build the house which would become the goods or services.