1.2 Factors of production Flashcards
1
Q
What is a factor of production
A
The resources used to produced a good/service
2
Q
What are the 4 factors of production
A
- Capital
- Labour
- Land
- Enterprise
3
Q
What is capital
A
Man-made goods used to produce other goods/services
4
Q
what is land
A
Natural resources used to produce goods/services
5
Q
What is labour
A
The human input in the production process, involving both mental and physical effort
6
Q
What is enterprise
A
- They take risks with their own money to run a firm
- They organise all 4 factors of production
- They seek to make a profit
7
Q
What factors affect labour productivity
A
- Training
- Education
- Experience
