Solution

Land, Labour, Capital and Entrepreneurship are the four factors of production.

i) The land is a natural resource and the primary factor of production. Land rent is the remuneration paid for the use of land.

ii) Labour is the physical or mental work done by an employee that is required for production. The remuneration for labour is paid through wages or salary.

iii) Capital is the wealth or monetary investment that is essential for production. Capital can also mean assisting tools, machinery and other means of production. The remuneration for capital is called interest.

iv) Entrepreneurship refers to the task of the individual who brings all the factors of production together and manages them. The remuneration or reward of the entrepreneur is the profit that is gained after the product is sold.