What are the factors of production?
Land consists of the natural resources that are found on the Earth. There are renewable resources such as water and trees, and there are also non-renewable resources such as fossil fuels and minerals. This "land" is extracted by the primary industry who then delivers it to the secondary sector.
Labour refers to workers who exert physical and mental work in the process of a good and/or service. In this factor, workers are classified under their skills and experience. If one person has undergone more training than another, that person would be more desirable for businesses, and he/she would have a better job and possibly a higher pay.
Capital applies to non-natural resources that are used to produce products and/or services. Capital mainly refers to money, where businesses invest in the stock market for the business to expand. Capital can also include tools and equipment, transportation and so on.
Enterprise (also known as entrepreneurship), basically manages, organizes and plans for the previous three factor inputs. Enterprise is often confused with labour, however the distinction between the two is that entrepreneurs have additional skills that separate them from the labour category. In order to be successful, entrepreneurs have to be passionate toward their jobs, have a creative mind, and be willing to take certain risks.
Labour refers to workers who exert physical and mental work in the process of a good and/or service. In this factor, workers are classified under their skills and experience. If one person has undergone more training than another, that person would be more desirable for businesses, and he/she would have a better job and possibly a higher pay.
Capital applies to non-natural resources that are used to produce products and/or services. Capital mainly refers to money, where businesses invest in the stock market for the business to expand. Capital can also include tools and equipment, transportation and so on.
Enterprise (also known as entrepreneurship), basically manages, organizes and plans for the previous three factor inputs. Enterprise is often confused with labour, however the distinction between the two is that entrepreneurs have additional skills that separate them from the labour category. In order to be successful, entrepreneurs have to be passionate toward their jobs, have a creative mind, and be willing to take certain risks.
Visual representation
References:
http://www.rocksmineralsandfossilsforkids.com/rmf-item-rocks-rough-LG.gif
http://www.idswater.com/Common/header/Img-water.jpg
http://www.tap.info.tn/en/images/repertoire/images_articles/economie/people_working.jpg
http://msnbcmedia4.msn.com/j/MSNBC/Components/Photo/_new/091020-home-construction.grid-6x2.jpg
http://webmoneymaker.net/wp-content/uploads/2011/11/Make-Money-online.jpg
http://media.tumblr.com/tumblr_m4n2deeePD1r2zc68.jpg
http://www.iclipsinc.com/wp-content/uploads/2011/02/Entrepreneurs.jpg
http://smallbiztechnology.com/wp-content/uploads/2012/06/Inspired-Entrepreneurship2.jpg
http://www.rocksmineralsandfossilsforkids.com/rmf-item-rocks-rough-LG.gif
http://www.idswater.com/Common/header/Img-water.jpg
http://www.tap.info.tn/en/images/repertoire/images_articles/economie/people_working.jpg
http://msnbcmedia4.msn.com/j/MSNBC/Components/Photo/_new/091020-home-construction.grid-6x2.jpg
http://webmoneymaker.net/wp-content/uploads/2011/11/Make-Money-online.jpg
http://media.tumblr.com/tumblr_m4n2deeePD1r2zc68.jpg
http://www.iclipsinc.com/wp-content/uploads/2011/02/Entrepreneurs.jpg
http://smallbiztechnology.com/wp-content/uploads/2012/06/Inspired-Entrepreneurship2.jpg