Factors of production

Investopedia Factors of Production Website and Video

There are 4 Factors of Production:

• Land
  
•  Labor
• Capital 
  
• Entrepreneurship

1. LAND: Land involves the natural resources we have as a country. Natural Resources are resources found in nature. They are the starting point for producing goods. 
   
2. LABOR: Labor involves using human resources. Human Resources describe the people who produce goods or provide services through working, or labor. They include talents and skills of people. All goods and services involve some human labor.
   
3. CAPITAL: Capital discusses  the things we need in order to make other things.  Machines, tools, trucks, factories, roads. These all help us make other things.
   
4. ENTREPRENEURSHIP: Entrepreneurs are people who start their own businesses and own them. They create new businesses by applying new ideas to satisfy customer needs. They invest their own money in hopes of making a profit, or what remains after the costs of running the business are paid.