Answer:
goods and services, resource, households.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
Economists usually use the circular flow diagram as a model to illustrate the characteristics and relationship existing between businesses and households in a particular economy.
Generally, businesses need productive resources in order to produce goods and services. They go to the resource market to buy productive resources from household. Thus, wages, profit, rent and interest flow from the businesses in the resource market to the household while land, labor, entrepreneurship and capital flow from the household to the businesses through the resource market.
