Factors of Production
Factors of production are the resources used in the production of goods and services. There are four main factors of production:

1. Land
- Land refers to all natural resources used in the production process, such as forests, minerals, water, and agricultural land.
- It is a primary factor of production and includes both renewable and non-renewable resources.
- The income generated from the use of land is called rent.

2. Labor
- Labor includes all human effort, both physical and mental, used in the production of goods and services.
- It is a crucial factor of production as it involves the skills, knowledge, and abilities of individuals.
- The income earned by labor is called wages.

3. Capital
- Capital refers to man-made resources used in the production process, such as machinery, tools, buildings, and technology.
- It is an essential factor as it enhances the productivity of labor and land.
- The income generated from capital is called interest.

4. Entrepreneurship
- Entrepreneurship involves the ability to combine land, labor, and capital to create goods and services.
- Entrepreneurs take risks and make decisions to organize and manage the factors of production.
- The income earned by entrepreneurs is called profit.
In conclusion, the four factors of production work together to create goods and services in an economy. Each factor plays a unique role in the production process, and their efficient allocation is essential for economic growth and development.