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Revision Notes for Chapter 7
1. Capital intensive production where production relies more on the use of
machineries and plants than human labours
2. Division of labour specialization in tasks or skills by an individual
3. Entrepreneur an individual who organizes other factors of production
4. Factors of production the resources used to produce goods and services
5. Fixed capital man-made resources, for example machineries and tools
6. Labour the people used in production
7. Labour intensive production where production relies more on the use of
human labours than machineries and plants
8. Production the transformation of resources into goods and services
9. Specialization the production of a limited range of goods
Factors of production:
Land: Businesses need a plot of land to locate its operations. This might
include factories, offices and car parks.
Capital: Capital refers to the artificial resources created in the business.
There are two types:
o Working capital stocks of raw materials which will be used up during
o Fixed capital man-made resources such as machineries and tools
Labour: This refers to the workforce in the economy, such as managers.
Enterprise: Entrepreneurs are business owners. They are responsible for
organizing other factors of production.