Factors of Production Flashcards
1
Q
Name the 4 factors of production.
A
Land, Labour, Capital and Enterprise.
2
Q
What is Land factor?
A
All the Earth’s natural resources.
Non renewable resources, Renewable resources, Minerals extracted from mining, water and animals.
3
Q
What is Labour factor?
A
Work done by the people who contribute to the production process
4
Q
What is Capital factor?
A
The equipment, factories and schools that helps produce goods or services.
5
Q
What is Enterprise factor?
A
People (entrepreneurs) who take risks and create things from Land, Labour and Capital.
6
Q
What is an Opportunity cost?
A
The benefit that’s given up in order to do something else. This is used because a lot of businesses have budgets so they have to see what has the most value.
