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Factors of Production

Definition

Factors of production are resources used in the production process, including labor (human effort), capital (physical tools/machinery), land (natural resources), and entrepreneurship (organizing/combining other factors).

Related terms

Labor: This term refers specifically to the human effort or work that goes into producing goods or services.

Capital: This term refers to physical tools, machinery, buildings, or any other man-made resources used in the production process.

Land: This term refers to natural resources such as forests, minerals, water bodies, or any other resource provided by nature that is used in production.

"Factors of Production" appears in:

Subjects (3)

AP Macroeconomics
Intro to Business
Intro to Political Science

Study guides (3)

AP Microeconomics - 1.1 Basic Economic Concepts: Scarcity
AP Microeconomics - 3.3 Long-Run Production Costs
AP Microeconomics - 5.1 Introduction to Factor Markets

Additional resources (3)

AP Microeconomics - 2024 AP Microeconomics Exam Guide
AP Microeconomics - Unit 1 Overview: Basic Economic Concepts
AP Microeconomics - Unit 1: Basic Economic Concepts

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