Factors of Production

Land All Natural Resources used to produce goods and services List Examples……..

Labor Any effort a person devotes to a task for which that person is paid Examples……

Capital Human-made objects used to create other goods and services are called PHYSICAL CAPITAL Money Machines Factories Knowledge and skills a worker gains through education and experience is called HUMAN CAPITAL

Entrepreneurship Leader who takes risks to combine land, labor and capital to create new goods and services in the pursuit of Profits.

Sources of Income Wages – Labor Rent Profit Investment – Interest – Value Added