Factors of Production

Land

• Natural resources that are used to create goods
• Ex: Water, land, coal, trees, animals.

Labor

• Physical labor input by a person who is getting paid.
• Ex: Worker, factory worker, cashsier

Physical Capital

• Objects used to make or create the goods and services.
• Ex: tractor, digger, cars, trucks.

Human Capital

• Knowledge or skill set brought by a person to create goods and services.
• Ex: Doctors, teachers, mechanics.

Entrepreneur

• Person who combines land, labor, and capital.
• Risktaker who brings ideas to the business to fuel economic growth.