What Are the Four Types of Economic Resources?

What Are the Four Types of Economic Resources?

What Are the Four Types of Economic Resources?

The four types of economic resources are labor, land, capital and entrepreneurship. These resources are also called the factors of production.

Labor refers to the workers involved in production. Land pertains to all natural physical resources, including all raw materials used in the manufacture of goods and services. Capital increases the productivity of human input. Entrepreneurship oversees the entire operation.

In economics, the four resource inputs are essential to the production of goods and services to sustain the unlimited wants and needs of humans. As demand increases, these finite resources become dangerously depleted. To avert future drastic repercussions, the process of decoupling or increasing the efficiency of these resources is now being considered.