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  Factors of production

Factors of production:

Human activity can be split down into two components, production and consumption. Whenever there is production, a procedure of transformation occurs. Inputs are transformed into an output. The inputs are categorized and termed to as land, labor, & capital. Together the inputs are termed as factors of production.

Whenever the factors of production are joined in order to generate something, a fourth factor is needed. Goods and services do not generate themselves however require some conscious thought procedure in order to plan and implement manufacture. This thought procedure is frequently termed as entrepreneurship or organization.

Factors of production refer to such goods and services that help in the productive procedure.

 

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