FACTORS OF PRODUCTION - INPUTS INTO PRODUCTION PROCESS - CELL
- Capital - used to assist production of other goods. E.g machinery.
- Enterprise - e.g entrepeneur - the person who addresses issues such as what, for whom & how to produce. They decide how much land, labour and capital are needed. They are risk takers and decision makers motivated by profit.
- Land - all natural resources. e.g medows. Also includes minerals such as coal, gold, agricultural crops and livestock.
- Labour - Human effort both physical and mental, used in the production of goods and services. Do not confuse with enterprise a bank manager is not an entrepeneur because he is not risking his own capital.
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