Physical: goods which can be used in the production process. Fixed: Machines; buildings. Working: finished or semi-finished consumer goods
Entrepreneurship
Managerial ability. The entrepreneur is someone who takes risks, innovates, and uses the factors of production. Resources are drawn together into the production process.
Reward/Incentive for Capital
Interest from the investment
Reward/Incentive for Entrepreneurship
Profit- an incentive to take risks
Land
Natural resources such as oil, coal, wheat, water. It can also be the physical space for fixed capital.
Labour
Human capital, which is the workforce of the economy.
Specialisation
When each worker completes a specific task in a production process
