Factor of production

Factor of production is a human service or material good that can be used to contribute to the success of a process of production. A constituent element of any production process. Examples would be labor, natural resources and capital goods. NOTE: Factors of production can be classified as to (1) human (labor) or nonhuman (material) factors, or (2) original or produced factors. The term "factor of production," as used by Mises, does not include the time factor, although he has referred to time as an "immaterial factor of production."