Factors of Production: Research
assignment (characteristics)
1. Land
Natural resources (e.g., minerals, forests,
water)
 Immobile and limited in supply
 Passive; needs labor and capital to be
productive
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2. Labor
Human effort: physical and mental work
 Varies in skills and productivity
 Perishable; cannot be stored

3. Capital
Man-made resources: tools, machinery,
technology
 Depreciates over time
 Increases labor efficiency

4. Entrepreneurship
Takes financial risks
 Innovates with new ideas/products
 Makes key production decisions
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