“What are the Three Factors of Production?”
They are natural resources, labor, and capital. Natural resources are materials like trees and oil. Labor is human effort used for production like waiters and scientists. Capital is what is used for production like offices and machinery.
Life Application/Analogy
So think of it like a lumber company.
The trees they chop down are the natural resource, the lumberjacks are the labor, and the wood mill is capital.
How do I remember it?
I think of Nala the Cat. Hear me out, Na- is for natural resources, La is for labor, and Ca- is for capital. It works, trust me.
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