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
- Entrepreneurs take risks, investing in a business
- 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
- Human Capital - Quality of labour is not the same and people have different skills
- 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.
- Capital - Goods used to produce other goods and services
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