Resources needed to provide goods or services are called

Resources needed to provide goods or services are called factors of production  

Further Explanation: Factors of reproduction  Factors of reproduction are inputs or resources that are used in the generation of goods and services with an aim of making profit. There are four main factors of production which include; Land  Labor  Capital  Entrepreneurship  Land  This refers to all the natural resources that are available to be used in the production of goods. These natural resources includes raw materials from the ground, non-renewable resources such as petroleum and renewable resources such as timber. The income or reward earned from land as a factor of production is rent. Labor  This refers to the manpower or work done by human beings. The value of labor depends on the skills, education and motivation of workers.  The reward for labor as a factor of production is wages and salaries. Capital  This refers to the capital goods, that is, man-made objects that are used for production of goods and services such as machinery, equipment and chemicals. They also include industries and commercial buildings. The reward or income earned from capital goods is interest  Entrepreneurship  It involves coming up with an idea and developing it into profitable business. An entrepreneur is therefore an individual who combines the other factors of production to build a business and add the supply in the economy. The reward or income earned by entrepreneurs is profit.

Keywords: Factors of production, labor, land, capital  

Learn more about Factors of reproduction: Reward for factors of reproduction: Capital goods: Consumer goods:

Level: High school  

Subject: Business  

Topic: Factors of reproduction