Factors of Production Flashcards
What is factors of production?
is the resources the economy has available to produce goods and services
What is land for?
stands for all nature, living or non-living which are used by man in production
What is land used for?
agriculture
What are examples of raw materials from land?
farming, mining, fishing
What is capital?
products that have been produced for use in the production of other goods and services
What are the man-made goods that are used in the further production of wealth?
capital
What is labor?
is the time and human effort exerted in the process of production
They are workers that are needed to produce products from raw materials
Labor
What is the role of an entrepreneur?
to take financial risks in order to achieve profit and growth
Which factor of production organizes land, capital, and labor?
entrepreneur
What is the income of land?
rent
What is the income of capital?
interest
What is the income of labor?
wages/salaries
What is the income of entrepreneur?
profit
