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: , , and . 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.