The factors of production are the essential inputs required to produce goods and services in an economy. They represent the resources used by firms to create output.

• Land: Refers to all natural resources such as minerals, water, forests, and land itself. The reward for land is rent.
• Labour: Represents the human effort—both physical and mental—used in the production process. The reward for labour is wages.
• Capital: Consists of man-made resources like machinery, tools, and buildings that assist in production. The reward for capital is interest.
• Enterprise (Entrepreneurship): Involves the organization of other factors of production and the assumption of business risks. The reward for enterprise is profit.