What the Factors of Production Are — Factors of Production | IGCSE Economics

Exam Frequency Analysis

Past paper frequency (2018 to 2024)

This topic accounts for approximately 6% of your exam marks.

stable

Low

Stable6%

Four factors and their rewards appear occasionally; usually 2 to 4 marks when tested, not on every paper.

The factors of production are the inputs an economy uses to make every good and every service. There are exactly four of them on the IGCSE syllabus: land, labour, capital and enterprise. Every good or service draws on some combination of all four.

Two quick definitions used throughout this topic.

A good is a physical, tangible product (a phone, a loaf of bread, a chair).
A service is an action one person performs for another (a haircut, a doctor's appointment, a delivery).

Both goods and services are produced by combining the four factors.