Share This Article:

Economic Definition of factors of production. Defined.

Offline Version: PDF

Term factors of production Definition: The four basic factors used to produce goods and services in the economy--labor, capital, land, and entrepreneurship. These are also called resources or scarce resources. The term "factors of production" is quite descriptive of the function these "resources" perform. Labor, capital, land, and entrepreneurship are the four "factors" or items use in the "production" of goods and services. So there you have it "factors" of "production."

 

« factor supply determinants | factory »

Permalink: http://glossary.econguru.com/economic-term/factors+of+production

Alphabetical Reference to Over 2,000 Economic Terms