WAEC SSCE Economics
Study notes for FACTORS OF PRODUCTION — part of the WAEC SSCE Economics syllabus. 1 learning objectives with explanations and exam tips.
The factors of production are the basic resources needed to create goods and services. Land includes natural resources like soil, forests, and minerals. Labour refers to human effort and skills workers provide. Capital means man-made tools, machines, and money used in production. Entrepreneurship is the ability to organize these resources and take business risks to create new ventures.
Think of a Nigerian cassava farmer. The land is the farmland itself, labour is the farmer and workers harvesting, capital includes the cutlass and processing equipment, while entrepreneurship is the farmer's decision to process cassava into garri to earn more profit. Without any one factor, production becomes difficult or impossible.
These factors are interdependent and essential for economic growth. Understanding how they work together helps you grasp how economies function and create wealth.