Factors of production are the inputs needed for creating a good or service, and the factors of production include land, labor, entrepreneurship, and capital.
Why are the factors of production so important?
If businesses can improve the efficiency of the factors of production, it stands to reason that they can increase production and create higher quality goods at lower prices. Any increase in production leads to economic growth as measured by GDP.
What are the factors of production and their characteristics?
Factors of production is an economic concept that refers to the inputs needed to produce goods and services. The factors are land, labor, capital, and entrepreneurship. The four factors consist of resources required to create a good or service, which is measured by a country's gross domestic product
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