Topic 2-Business resources(factors Of Productio)

Question 1

Define factors of production

Answer 1

These are the inputs into the production process from which an output of goods or services are produced.There are for factors of production

Question 2

What are the 4 factors of production

Answer 2

Land,labour,capital and enterprise

Question 3

Land

Answer 3

This includes the area on which the business is built and all natural resources that come from the ground

Question 4

Labour

Answer 4

The human resources that are used in the production process.They are the key factor in determining productivity

Question 5

Capital(Money)

Answer 5

These are the man made resources that are used to produce other goods and services. For example,factories,machines and vechicles

Question 6

Enterprise

Answer 6

Someone who has the ability to spot an opportunity for a new business,has ideas,combines the other factors of production and is prepared to take risks to make the business work

Question 7

Labour intensive

Answer 7

A business that uses a large proportion of labour relative to capital in the production process

Question 8

Capital intensive

Answer 8

A business that uses a large proportion of capital relative to labour in the production process

Question 9

The rewards to the factors of production

Answer 9

Land-Rent
Labour-Wages
Capital-Interest
Enterprise-Profit