Factors of Production

Note: I will separate each posts into an easy part and a hard part, indicated by a line.

The easy definition: Factors of production are things needed to create things and services. It is divided into 4 different parts: Land, Labor, Capital and Entrepreneurship.

Land is basically anything that can be dug up, chopped down or plucked.

Labor is exactly what it says on the tin: The slavery of thousands of innocent souls, ALL FOR THE SAKE OF CONQUERING THE GALAX- I mean, labor is labor. Of course it has nothing to do with conquering the galaxy or anything of the sort.

Capital is..NOT MONEY!!! Suprise? Maybe not. If Land is any natural things used in a production, Capital is any man-made things used in a production. When using this, one should be careful. For example, a violin on my hand doesn't make it a capital; it's a consumer good (and a sign that people should run for, unless they have earplugs). A factory or a machine would count as a capital though.

Entrepreneur is a fancy term for "Bringing the first three together in order to create a product".

_____________________________________________________________________

The nerd definition: Of course, talking about Factors of Productions means that we have to come upon the issue of scarcity. Otherwise, there's not really much explanation.

What happens if you give Factors of Productions to other? You get payments!

Click me for a cheesy song!