Factors of production

In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, finished goods and services. The amounts of the various inputs used to determine the quantity of output according to a relationship is called the production function. There are three basic resources or factors of production: land, labour, and capital. These factors are also frequently labeled "producer goods" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods." All three of these are required in combination at a time to produce a commodity.