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2. O՚Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 4. ISBN 978-0-13-063085-8.
Factors of production, term used by economists to denote the economic resources, both human and other, which, if properly utilized, will bring about a flow or output of goods and services.
Simply stated, factors of production are the “inputs” necessary to obtain an “output.” However, not all the “inputs” that must be applied are to be regarded as factors in the economic sense. Some of these inputs in a normal situation are “free.” Although atmospheric air, for example, or a substitute for it, must be at hand to enable production to go on, it is not counted among the factors since it is available in most circumstances in practically unlimited quantities.