The Factors of Production

          Four resources, or factors of production, must be coordinated in any nation or economic system in order to produce goods and services. They are land, labor, capital, and management.

LAND

You learned in the raw materials needed to manufacture products come from the land - from farms and ranches, forests, mines, and waters. There are our natural resources.

LABOR

To convert raw materials into products, we need labor, the skilled and unskilled workers who operate our farms, mines, factories, distribution systems, and retailing activities. Labor is a human resource.

CAPITAL

To produce goods and services, we need capital, which may take the form of money or assets such as machinery, factories, transportation system, and buildings. Such things are our capital resources.

MANAGEMENT

Management, or entrepreneurship, is the factor of production that brings the other three together to produce the goods and services we need and desire. Like labor, management is a human resource