These elements are known as economic resources or factors of production. Production can not take place if the factors are absent. These factors are;

1. Land( natural resouces):  these are natural resources used in the production of goods and services e.g  trees, seas, mineral deposite, rocks etc. The reward to land is rent.
2. Labour(human resources): Labour is any human effort mental and physical use in production.
3. Capital( man made resources): capital consist of wealth set aside to be use for the production of further wealth e.g machines, factories, fertilizer etc. The reward to capital is interest.
4. Entrepreneur(managerial resources): the entrepreneur managies and combines the other factors of produce the required good and services. The reward to the entrepreneur is profit.