Resources used to produce goods and services are called factors of production. Identify and explain

Question:- Resources used to produce goods and services are called factors of production. Identify and explain any five factors of production.

Answer

The five main factors of production are:

Land: This consists of the input resources which are from the natural resources involving land, water, minerals, and other raw materials utilized in the manufacturing process.

Labour: This refers to the total effort put in by people in the manufacturing of goods and the delivery of services such that they entail physical and or mental strength.

Capital: This includes manufactured resources in the form of machinery and tools, equipment, factory, structure and other facilities used to deplete the product.

Entrepreneurship: This relates to the initiatives individuals or organizations undertake to bring together the other factors of production and entrepreneurial activity which inculcate new products, services, or processes in the market.

Technology: This comprises knowledge about the production process including technologies, technologies’ innovations, inventions, and patents acquired during the production process.

Factors of production are resources employed in the production of commodities and services and include; Land, labour, capital and entrepreneurship; aspects of the availability, quality and efficient use of these factors define the output and comparative advantage of an economy.