What are factors of production? Provide an example of each of the four factors of production. Make sure your answer is written in complete sentences.

Answer:

Responses may vary but should include some or all of the following information: The factors of production are what a society uses to produce goods and services. This includes land, labor, capital, and entrepreneurship. Land includes all the natural resources people can use for business, such as soil, forests, water, and minerals. Labor is work done for pay, which is what a business’ employees do. Capital includes the things needed to produce good and services. Capital can be broken into two parts: physical capital (buildings, machinery, tools, etc.) and human capital (skills, experience, knowledge, etc.). The entrepreneur is the factor of production that brings all of the other items together. Entrepreneurs are people who start businesses and bring products to market.