1.2 Factors of Production Flashcards
________ are people or firms who need and want goods and services
Consumers
_______________ are used to make goods and services
Resources or factors of production
LLCE
- Land
- Labour
- Capital
- Enterprise
Rewards for Factors of Production
Land
Labour
Capital
Enterprise
- Land - Rent
- Labour - Wages
- Capital - Interest
- Enterprise - Profits
Mobility of Factors
Refers to the degeree of mobility while changing from one production line to another
Geographical Mobility
Occupational Mobility
Changes in the Quantity or the Quanlity of Factors of Production
- Cost (Labour Costs, Raw materrials costs)
- Government Policies (Taxes, Subsidies)
- New Technology
- Migration of Labour
- Improved Education and Healthcare
- Weather Conditions (Agricultural Products)
Land
natural resources used in production
Labour
human effort used in production of products
Capital
man-made resources used to produce products
Enterprise
skills and willingness to take the risks required to organize productive activities
______ in firms to produce goods and services
Entrepreneurs organize and combine resources
______consumer goods last a long while (e.g. furniture)
______ consumer goods do not (e.g. food)
Durable
Non-durable
________ are used up in production
Capital goods and semi-finished goods or components
Geographical Mobility
- Refers to the willingness and the ability of a person to relocate from one area to another due to employment purposes
- Reasons why many workers are not willing to relocate Family Ties and Related Commitments, Cost of Living
Occupational Mobility
Refers to the ease with which a person can change between jobs.
This would vary depending on the cost, training period and the educational professions.
