factors of production

Question 1

Name the four factors of production

Answer 1

Land, Labour, Capital and Enterprise

Question 2

Why do we need all four factors?

Answer 2

In order to provide us with goods and services, business have to co-ordinate the factors of production. They fully satisfy our needs and wants

Question 3

describe land

Answer 3

Natural resources and not only the surface of the earth but all the natural resources discovered within (e.g. oil, fish, coal, iron ore, crops and trees)

Question 4

describe labour

Answer 4

Human resources (e.g. employees who work for the business)

Question 5

describe capital

Answer 5

Human-made resources (e.g. the buildings, machinery and equipment used in the production process)

Question 6

describe enterprise

Answer 6

This is the art of bringing together other factors of production in order to produce goods and services. The Entrepreneur is the risk taker