Factors of production Flashcards
What are the factors of production?
Land, labour, capital, enterprise
What is opportunity cost?
Opportunity cost is the cost of any alternative when making a choice
What is a good?
A good is something that can be touched (tangible)
What is a want?
Something desired
What is an enterprise?
an individual who supplies products or services. Their main reward is the profit made from running the business.
What is land?
Land includes all natural physical resources’
The benefits from a temperate climate
or the harnessing of wind power and solar power and other forms of renewable energy. The reward for
land is called rent.
What is labour?
Labour is the human input into production e.g. the supply of workers available and their productivity.
The reward to labour is the wages that they receive.
What is capital?
Capital goods are used to produce other consumer goods and services in the future. The reward for
capital is called interest.
