Land: Land includes all natural physical resources – e.g. The classical economists classified factors of production into four kinds namely land, labor, capital and organization . Posted on January 1, 2021 by January 1, 2021 by Land is a passive factor whereas labour is an active factor of production. Factors of production are the resources the economy has available to produce goods and services. The classical factors include land, labor, and capital. natural resources) describes all naturally-occurring resources (e.g. Start studying Factors of production. Entrepreneurship as a Factor of Production Entrepreneurship is the drive to develop an idea into a business. Businesses must constantly upgrade their capital to maintain a competitive edge and operate efficiently. Economists have expressed different views regarding the number of factors of production. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. Exercise The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function.There are three basic resources or factors of production: land, labour and capital. Factors of production are the inputs available to supply goods and services in an economy. The factors of production include land, labor, entrepreneurship, and capital. Factors of Production . The four factors of production describe all the inputs or resources that are used in the production of goods and services. The most successful are innovative risk-takers. soil, water, air) that can be used in the production process. Labor is the human effort that can be applied to the production of goods and services. To put it in different terms, the factors of production are the inputs needed for supply. An entrepreneur combines the other three factors of production to add to supply. In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. Actually, it is labour which in cooperation with land makes production possible. Factors of production are the inputs needed for the creation of a good or service. fertile farm land, the benefits from a temperate climate or the harnessing of wind power and solar power and other forms of renewable energy . Land (i.e. Land is the natural resource that an enterprise uses to produce goods and services to generate a profit. Factors of production are those agents which help in the production of various goods. 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