CH14 Factors of production Flashcards
What are the 4 factors of production?
Capital, Enterprise, Land, Labour
What is capital?
Any man made resources that are used to produce goods and services
What is enterprise?
-Involves taking risks when setting up or running a business
-An entrepeneur decides the combination of the factors of production to produce goods and services with the aim of making profit
What is land?
-Natural resources or physical locations used to produce goods and services
What is labour?
Human input in producing goods and services which requires physical and mental effort
What is the primary sector?
Production involving the extraction of raw materials from the earth
What is the secondary sector?
Production involving the processing of raw materials into finished or semi finished goods
What is the tertiary sector?
Production of services in the economy
