Factors of production:Land:\xa0 It is defined so as to include not only the surface of the Earth but also all the other gifts of nature.Labour: Labour consists of all human efforts of the body or mind which are undertaken in the expectation of\xa0reward.Capital:\xa0 Capital is known as the produced means of production. First, it is created by man and is not a gift of\xa0nature. Second, it is a means of production and used as an input in producing other goods. Such type of\xa0goods is not directly consumed.\xa0Human Capital: A human capital is a person who carries the risk of business and coordinates the activities of all the other\xa0factors of production.Out of all the four factors of production, human capital is considered the best among all the resources. This is because it\xa0makes use of the other resources like land, labour and physical capital to produce an output while the other resources cannot become useful on their own.\xa0