1.2.3-Factors of production

• Factors of production are resources used by firms to produce goods and services
• Enterprise-When a entrepreneur takes land, Labour and capital and organise them in order to produce products that are profitable. The reward is profit.
• Capital-As a factor of production, it refers to man-made aids that are used in the production process. The reward is interest.
• Land- Land encompasses all the natural resources that come from the earth that are used in the production of goods and services. Raw materials generate goods. The reward is rent
• Labour- Labour includes all the workforce in a economy. Value of a worker is called human capital. A worker can be valued by the income they earn. The reward is Wages.