What are land, labour, capital and organization in economics?
These four refer to the “Factors of Production.” The business organisations combine all these four and produce and sell goods. LAND : This means the land on which the plant is built. It also refers to the resources derived from land such as ore, minerals, ec. LABOUR: This refers to the people who work for the firm. It includes physical work like carrying goods, operating machinery, etc. It also includes the mental work like that of accountants, managers, etc. CAPITAL: This refers to the money invetsed on various things like raw material, labour, etc. ORGANISATION This refers to the people who organise and co ordinate the working of the business. For e.g. owners of business, etc. Please note that: Land earns “Rent.” Labour earns “Wages.” Capital earns “Interest.” Organization earns “Profit.
