Factors of Production

Question 1

Four factors of production

Answer 1

• land
• labour
• capital
• enterprise

Question 2

What is land and an example

Answer 2

▪ Resources that are given from nature
□ E.g. water, oil, copper, natural gas, coal, forests
▪ Can be renewable (forests) or non-renewable (oil)

Question 3

What is labour and an example

Answer 3

▪ Involves human input
▪ Quality depends on workforce’s skill, education and motivation
▪ Can be physical or mental

Question 4

What is capital and an example

Answer 4

▪ Manufactured resources
□ E.g. factories, machines, hammers, conveyor belts, computers
▪ Man-made goods used for the production of other goods

Question 5

What is enterprise and an example

Answer 5

▪ Someone who brings the other three factors together
□ Management, organisation and planning of other three factors
□ Needed for economic growth