What are the factors of production, Microeconomics

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Factors of Production:   The factors of production are the resources that are essential for production. They are usually separated into 4 dissimilar groups:

  • Land - all natural resources (minerals and other raw materials).
  • Labour-all human resources.
  • Capital - all man-made aids to production (machinery, equipment and so on).

 • Enterprise - entrepreneurial ability. The rate of economic growth that an economy can manage will be affected by the quantity and the quality of the factors of production they have.   

 


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