Factors of production

5.3.1 Changing relationships between enterprise, capital, land, and labour

The four factors of production are the essential resources used to produce goods and services. They include:

1. Land - All natural resources provided by nature.

2. Labour - All human effort used in production.

3. Capital - Human-made goods (or means of production) which are used in the production of other goods.

4. Enterprise - The skill and risk-taking ability of the person who brings together all the other factors of production together to produce goods and services.

Capital-intensive activities - Activities that rely heavily on human labour rather than machinery or automation.

Labour-intensive activities - Activities that rely on machinery and technology rather than human labour.