In economic terms, production is the act of making goods and services it involves transforming inputs into outputs that satisfy human wants and needs.

Economists divide factors of production into four categories: land, labor, capital and entrepreneurship.

1. Land:Every natural resource utilized to create goods and services is included in this.(This includes anything that comes from land) An example of land as factor of production is fertile soil used for farming.
2. Labor: It includes physical and mental efforts that people contribute in the production process. An example of labor is factory workers assembling products, bus that transports students to school, etc.
3. Capital: is the term used to describe all resources created by humans that are required for the manufacturing process, such as buildings, technology, machinery, and tools. An example of capital as a factor of production is a computer utilized for data at an office.
4. Entrepreneurship: This is the process by which individuals organize resources, take calculated risks, and combine all the elements of production to establish and run a business. An example of this is starting a new tech startup.

The four factors of production are scarce resources that forms the building blocks of the economy.