Factors of production Flashcards
1
Q
What are Factors of production
A
Factors of production are things that are needed in creating of goods or services.
2
Q
What are the factors of production.
A
Land, Capital, Labor, and Enterprise.
3
Q
What is Land
A
Lands are the natural resources needed for production. Reward for land is rent.
4
Q
What is Labor
A
Labor is the human effort in production. The reward for labor is Wages and Salaries.
5
Q
What is Capital.
A
Capital is the resources put in to a business for production. Money, machines etc. are all part of capital. The reward for capital is interest.
6
Q
What is Enterprise
A
This is the person or organization that decides to go into a business. The reward for enterprise is profit.
