Factors of Production Flashcards
1
Q
Define Factors of production
A
Factor inputs used to produce a factor output
2
Q
What are the 4 factors of Production? (Hint: C.E.L.L)
A
Capital
Enterprise
Land
Labour
3
Q
What is Capital?
A
Investment in man-made aids for production
4
Q
What is Land?
A
Natural resources
5
Q
What is Labour?
A
characteristics and specialisation of workforce
6
Q
What is Enterprise?
A
Risk undertaken by an entrepreneur using the other factors of production for profit
7
Q
What is the reward for Capital?
A
Interest
8
Q
What is the reward for Enterprise?
A
Profit
9
Q
What is the reward for Land?
A
Rent
10
Q
What is the reward for Labour?
A
Wages
