1.3 Factors of production

In this chapter you will learn how to:

• define the meaning of the factors of production: land, labour, capital and enterprise
• explain the importance of the factors of production
• describe the rewards to the factors of production
• explain the difference between human capital and physical capital
• explain the division of labour and specialisation
• explain the role of the entrepreneur in the organisation of the factors of production in 21st century economies and as a risk taker