The FACTORS OF PRODUCTION

definition

• The three groups of resources that are used to make all goods and services
• Land
• Labor
• Capital

land

• Natural resources used to produce goods and services
• Rent

Labor

• Effort of humans toward a task for which he is paid
• Income

capital

• Human made resources used to produce goods and services

Examples

• You purchase land to start your business
• You hire people to make you sales
• They sell products to earn back what they are spending