Definition, Meaning & Synonyms
factor of production
noun
/ˈfæktər ʌv prəˈdʌkʃən/
Definition
A factor of production is a resource or input used in the production of goods and services.
Examples
- The four main factors of production are land, labor, capital, and entrepreneurship.
- Investing in new machinery is an important factor of production for increasing output.
- Education and training can enhance the labor factor of production.
Meaning
Factors of production are the essential elements needed to produce anything in an economy, including labor, land, capital, and entrepreneurship.
Synonyms
- resource
- input
- economic resource
