Factors of Production

  • Created by: evu
  • Created on: 08-06-15 15:35
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  • Factors of Production
    • Capital - Goods used to produce other goods and services
      • Automated machinery that don't rely on human input
      • Manually operated goods such as catering equipment - these require human input
    • Enterprise - Setting up and running a business
      • Entrepreneurs take risks, investing in a business
        • The reward is profit
      • businesses are set up through ideas - business plans
    • Labour - Human input into the production process
      • Human Capital - Quality of labour is not the same and people have different skills
        • People with more human capital are likely to be more productive
      • Productivity - Output per worker per period of time
    • Land - resources held on or below land. Sea, rivers and lakes are also included
      • Quality of land is more important than quantity of land
      • Quality of land includes oil reserves and minerals
      • Quantity of land includes large deserts, brown-land etc.


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