Factors of production Flashcards
1
Q
Factors of production
A
Factors of Production are resources required to produce goods or services. They are land, labor, capital and enterprise
2
Q
Land
A
the natural resources that can be obtained from nature. This includes minerals, forests, oil and gas. The reward for land is rent.
3
Q
Labor
A
the physical and mental efforts put in by the workers in the production process. The reward for labour is wage/salary
4
Q
Capital
A
the finance, machinery and equipment needed for the production of goods and services. The reward for capital is interest received on the capital
5
Q
Enterprise
A
the risk taking ability of the person who brings the other factors of production together to produce a good or service. The reward for enterprise is profit from the business.
