Factors of production Flashcards
What are the 4 factors of production?
Land, labour, capital and enterprise.
What are inputs?
Things we need to use to produce an output.
What are outputs?
The result of a process of production (goods-table- and services-education).
What is labour? Give an example in the production of tables. What is the cost or reward?
The human effort put into the production of a good or service: carpenter. WAGES.
What is land? Give an example in the production of tables. What is the cost or reward?
The natural resources (gifts of nature) used to produce goods or services: wood. RENT.
What is capital? Give an example in the production of tables. What is the cost or reward?
(NOT MONEY) The manmade goods used to produce other goods or services: tools. INTEREST.
What is enterprise? Give an example in the production of tables. What is the cost or reward?
- Investing in other factors of production (taking a risk).
- Organising other factors of production.
Owner of carpintery factory. PROFIT.
What is productivity?
How much of a good or service a certain factor of production can produce.
What is geograhical mobility?
How easy it is to move a factor of production from one place to another.
What is occupational mobility?
How easy it is to transfer factors of production from one job to another.
What is opportunity cost?
The next best option foregone every time a choice is made.
What is an econmic good?
It has an opportunity cost, humans have to decide to produce it.
What is a free good? Give three examples.
Has NO opportunity cost: sunlight, oxgen, water in rivers.
What is a PPC?
A Production Possibility Curve is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite resources.
