Answer to Question #271449 in Economics for Maki

Question

Factors of production

Answer 1

Factors of production are economic resources that participate in the production process of goods and services.

It is customary to distinguish 5 factors of production:

work,

Earth,

capital,

entrepreneurship,

information.

Labor - the mental or physical abilities of a person that are required in production. Labor is characterized by intensity and productivity.

Land - all types of natural resources that are used to produce economic goods. For example land plots, forests, land used for growing agricultural products, minerals.

Capital is a set of man-made production resources: equipment, tools, production buildings, vehicles, raw materials.

Entrepreneurship (entrepreneurial ability) - a set of skills and knowledge that allow you to optimally use the factors of production and get maximum income.

Information - information, knowledge, contributing to successful economic activity.