The Factors of Production and Distribution
In the United States, anyone is free to produce and sell goods and services. Sellers try to do this because they have a simple goal: to make money. They work hard to figure out what buyers want and need, so they can produce those things.
As we learned in the first lesson, there are four ingredients that go into the production of goods and services. These ingredients are called the factors of production. They include human resources, natural resources, capital resources, and entrepreneurship. We will quickly review these factors now.
The people whose efforts and skills go into the production of goods and services are called human resources, labor, or the workforce. A country that has a large workforce will be able to produce more goods and services.
