Business Environment.
Economists classify factors of production into four categories: Land, labor, capital and enterprise (MANKIW, 2011). Land is a natural resource that includes ground space, air, seas, oceans etc. The owners of land are referred as landlords and its rewarding factor as rent. Land is considered as the prime factor of production since the other factors need a surface for them to be effective. Labor refers to human input such as skills, knowledge, expertise and management. It is classified according to quality, skills and qualifications. The owners of labor are referred to as laborers while the rewards are wages and salaries.
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