Land often described as the free gifts ofnature, the factor of productionLand includes natural resourcessuch as minerals, oil, coal, thesea, the fishes in the sea, plus landitself. One of the problems ofdescribing what is meant by land isthat as soon as something isadded to it, for example fertilizer tosoil, it quickly becomes someonescapital. So when describing land, itis best to stick to the free gifts ofnature definition.
perhaps the most importantresource in any developedcountry. Labour includes theskills of those who work, as wellas the quantity of people whowork or who are available forwork. In the UK there are labourshortages, often for skilled jobs,but also for manual workers inareas where the cost of living ishigh. Shortages of skilled labourcan push up wage rates.
this means moneyinvested into a business.But because the moneyinvested does not just sitin a bank, but is turnedinto productive goodsthat are used within thebusiness, a businessescapital can include, machinery, buildings, vans, computers etc., aswell as cash.
Is the ability to combine the otherfactors of production, and then to usethem to provide profitably, goods orservices.Whatever the product, whatever theservice, they will all need somecombination of all four factors ofproduction to be produced. Theactual mix will depend on the productor service, for example the key factorfor an oil well is land, but without theother 3 factors no oil will be produced.For a bank, capital is the mostimportant factor, and for a footballteam labour - but again without theother factors there is can be noBarclays Bank, no BP or Tesco andthere is no Manchester United.