Factors of Production

Surface of the earth, Mineral resources, Forests, Rivers and water bodies

Land includes all natural resources provided by nature - surface of earth, minerals, forests, rivers, etc. Factory buildings are man-made and therefore part of capital, not land.

Increases efficiency, Saves time, Improves quality, Reduces cost of production

Division of labour increases efficiency, saves time, improves quality, and reduces costs. Monotony is a disadvantage, not an advantage.

Man-made goods used in production

Capital refers to man-made durable goods like machines, tools, buildings, etc., that are used to produce other goods and services. It is distinguished from natural resources (land) and human efforts (labour).

Machinery, Factory buildings, Tools and equipment

Fixed capital includes durable goods used repeatedly in production like machinery, buildings, and tools. Raw materials and fuel are circulating capital as they are used only once.