Land is a factor of production which include all the natural resources.

Labour is all human effort applied in production.

capital on the other hand is generally taken to mean money. in real sense capital refers to all man-made resources used in production of goods and services.

REWARDS FOR THE FACTORS OF PRODUCTION.

There is need to reward the factors of production as an inducement to put the factors into useful production.

Land earns rent for the owners of the factors of production. Land may be divided into two major parts. i.e. commercial rents and economic rent.

Labour as a factor of production may earn salaries, wages , commissions among others.

interest is usually paid for the use of capital.

the reward to an entrepreneur is profit. profits are the excess of selling price above the cost price.