(a) Land: According to ancient thought land is a free gift of nature. In economics land does not mean only earth but natural resources, climate,vegetation, mountains, water, mines etc. In the view of availability of land is stable. Land is a unmovable factor of production because it cannot be taken from one place to other. It is of different grade according to its fertility or production capacity. In the process of production, tax given to land owner in place of its use is called rent.
(b) Labour: Labour done by man to produce goods and services physically and mentally. That labour is considered labour in economics which is done to produce or gain something. For example: Labour done by housewife is not considered as labour while the same work done by servant is called labour. Labour is a movable means of production. Labour is not always rewardful. The reward got by a labour against labour is called wage.
(c) Capital: All those materials and man’s capability which are utilized in production is called capital. A part of capital is kept without use while some is utilised in future. It is one of the factors of production which is earned by man by utilising natural resources. It can also be said to be a tool of man. Machine, tools, industries and transport are example of capital.
(d) Entrepreneur: In production process a person who gave momentum to land, capital and labour is called entrepreneur. He produces by utilising means in right proportion. He takes risk for production, hence he is called brave and courageous. Without taking risk production can not be done. He is called as organizer and manager. His reward is that earning which is left after paying cost of production. It is called profit. It is not certain. He can get both profit and loss.
