The agent, components or resources which are combined together to produce goods and services
Factors of production
Land
Labor
Capital
Entrepreneur
Land
The natural resources or a free gift of nature, including land surface, forests, mineral resources, rivers, oceans and atmosphere
Land
Immobile
Supply is fixed
Free gift
Subject to diminishing returns
Variability
Reward is rent
Labor
All human effort, both physical and mental, directed towards production
Labor
Mobile
Human factor
Not fixed
Perishable
Controls other factors of production
Reward is wages and salaries
Types of labor
Unskilled (brown collar jobs)
Skilled
Capital
Man-made assets used in production, including physical cash, hoes, buildings, raw materials, semi-finished goods and other equipment
Types of capital
Fixed
Circulatory or working
Current or liquid
Social
Entrepreneur
The factor of production that co-ordinates and organizes other factors of production in order to produce goods and services, bears the risks and takes major decisions, risks capital to obtain maximum profit
