Factors Of Production Flashcards
What are factors of production?
Factors of production are resources used to produce goods and services
What does land refers to?
Land refers to the natural resources or free gifts of nature used in the production of goods and services.
What does ouput refers to?
Output refers to the goods and services produced.
What does labour refers to?
Labour refers to workers who provide their physical and mental efforts to produce goods and services.
What is a final good?
A final good is a good which is ready for consumption.
What is capital in the factor of production?
Capital refers to man-made resources used in the production of goods and services.
What is an enterprise?
Enterprise as a factor of production combines the other three factors (land, labour and capital) to produce goods and services with the aim of making profits.
What does non financial capital means?
Non-financial capital are other man-made resources required to produce output.
What is financial capital?
Financial capital is money used to buy tools and equipment in the business.
What does the production process refers to?
The production process refers to steps involved in transforming factor inputs into output.
When does loss occur?
Loss occur when costs are higher than revenue.
When does profit occur?
Profit occur when revenues are greater than costs
