factors of production Flashcards
1
Q
what are the three main factors of production?
A
land, labor and capital
2
Q
define land
A
land represents all natural resources used in the production of goods
3
Q
give 3 examples of land
A
oil, water, wood
4
Q
define labor
A
includes all the work force involved in the production off goods and services
5
Q
give 3 examples of labour
A
teachers, doctors, construction workers
6
Q
define capital
A
this is the artificial resources made by labor
7
Q
what are the two types of capital?
A
working capital and fixed capital
8
Q
what is working capital?
A
refers to stock of raw materials used in the day to day operations of the business
9
Q
what is fixed capital?
A
refers to long term assets used in the process of production
