Factors of Production: Factors of production are the resources used in the production process—land, labor, capital, and entrepreneurship.
Productivity: Productivity measures how efficiently inputs (resources) are transformed into outputs (goods/services). Higher productivity means producing more output with fewer inputs.
Specialization: Specialization occurs when individuals, firms, regions or countries focus on producing specific goods/services where they have a comparative advantage. This leads to increased efficiency and overall production.