Identify and describe the factors of production

What will be an ideal response?

1 ) Labor. Obviously businesses need people to gets things produced. Labor is the human resource that refers to any physical or intellectual work people contribute to a business's production.
2 ) Natural resources. Most workers who provide the labor to produce a good need something tangible to work with. Natural resources are the raw materials provided by nature that are used to produce goods and services. Soil used in agricultural production, trees used for lumber to build houses, and coal, oil, and natural gas used to create energy are all examples of natural resources.
3 ) Capital. There are two types of capital: real capital and financial capital. Real capital essentially refers to the physical facilities used to produce goods and services. Financial capital, on the other hand, is money used to facilitate a business enterprise. Financial capital can be acquired via business loans, from investors, or through other forms of fundraising, or even by tapping into personal savings.
4 ) Entrepreneurial talent. An entrepreneur is someone who assumes the risk of creating, organizing, and operating a business and directs all the business resources. Entrepreneurs are a human resource, just like labor, but what sets entrepreneurs apart from labor is not only their willingness to bear risks but also their ability to manage an enterprise effectively. Successful entrepreneurs are rewarded with profits for bearing risks and for their managerial expertise.
5 ) Intellectual property. This consists of privately owned, intangible assets developed as a result of people's intellect and creativity. Drug patents, copyrights to songs, and trademarks for products are examples.
6 ) Technology. Technology refers to items and services such as smartphones, computer software, and digital broadcasting that make businesses more efficient and productive.