Factors of Production Flashcards
1
Q
What does land refer to?
A
Natural resources used in a business.
2
Q
What does labour refer to?
A
The time, knowledge or physical/mental labor of a person demanded by a firm in order to produce a G&S.
3
Q
What is capital?
A
Capital is the things used in the production of goods and services but not consumed in the process.
4
Q
What does enterprise/entrepreneurship refer to?
A
The management or idea of a person running a business. Enterprise brings all 3 factors of production together, land, labour, capital with an idea.
