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# Factors of Production (FOP) Resources refer to the factors of production that are used in the production process to produce goods and services to satisfy consumers. ## (a) Land * **Definition:** Anything that comes from nature. * **Payment:** Rent is usually paid for the use of land resources....

# Factors of Production (FOP) Resources refer to the factors of production that are used in the production process to produce goods and services to satisfy consumers. ## (a) Land * **Definition:** Anything that comes from nature. * **Payment:** Rent is usually paid for the use of land resources. * **Examples:** Land, ore. ## (b) Labour * **Definition:** Physical and mental effort used to produce goods. * **Payment:** Wage * **Examples:** Teacher, doctor. ## (c) Capital * **Definition:** Any goods used to produce other goods. * **Payment:** Interest * **Examples:** Hammer to build a table, mining equipment. ## (d) Enterprise * **Definition:** Someone who combines land, labor, and capital to produce a good. * **Payment:** Profit * **Examples:** Elon Musk # Distinction between Microeconomics and Macroeconomics * **Microeconomics:** The study of particular markets and segments of the economy. * **Examples:** Housing market, petrol market. * **Macroeconomics:** The study of the whole economy. * **Examples:** Unemployment, inflation, national level economic growth. # Economics Economics is a social science, it's difficult to develop economic laws because of the unpredictability of human behavior.