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Factors of Production


The are four factors of production:




This refers to all of the tools, buildings , machines et cetera used in the production of goods and the money that firm have and use.




This is carried out by entrepreneurs who:



Think of ideas.



Organise the other three factors of production.



Take risks with their own money and the financial capital of others.




Not only the land, but all of the natural resources as well, e.g., gold, oil, fish, wheat.  There are two types of land:



Non-renewable resources, e.g., oil, gas and copper.



Renewable resources, e.g., fish, forests and corn.




This is the workforce of the economy.  All workers possess different qualities.





E-mail Steve Margetts