The factors of production

Question 1

factors of production

Answer 1

The factors of production
refer to the resources
required to produce a
good or service, namely
land, labour, capital and
enterprise.

Question 2

Land

Answer 2

the natural resources required in the production process, such as oil,
coal, water, wood, metal ores and agricultural products.

Question 3

Labour

Answer 3

the human resources required in the production process, including
skilled and unskilled labour.

Question 4

Capital

Answer 4

the manufactured resources required in the production process, such
as machinery, tools, equipment and vehicles.

Question 5

Enterprise

Answer 5

the skills a business person requires to combine and manage the
other three factors of production successfully.

Question 6

The mobility of factors of production

Answer 6

The mobility of factors of production refers to the extent to which resources
can be changed for one another in the production process.

Question 7

Geographical mobility

Answer 7

Geographical mobility refers to the willingness and ability of a person to
relocate from one area to another for employment purposes.

Question 8

Occupational mobility

Answer 8

Occupational mobility
refers to the extent to which
labour is able to move
between jobs. Retraining
and upskilling help workers
to improve occupational
mobility.