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Factors of Production
- LAND
- All natural
resources
that are not
man made.
- Non-renewable
resources – e.g.
coal, oil, gold.
Once used will
never be
replaced.
- Renewable
resources – can be
used & replaced.
E.g. fish stocks,
forest, water.
- Sustainable resources
– can be exploited
economically & will not
diminish or run out.
E.g. forest if managed,
not sustainable if build
a motorway on it.
- Non-sustainable –
diminish over time
due to economic
exploitation. E.g. oil
- All natural
resources
that are not
man made.
- LABOUR
- The human
input into the
production
process
(workers)
- Each worker has a unique set
of inherent characteristics –
inc. intelligence, manual
dexterity, emotional stability.
- But workers are also
the product of
education & training
- The value of a worker
is called his or her
HUMAN CAPITAL
- The human
input into the
production
process
(workers)
- CAPITAL
- The stock of manufactured
goods used to produce other
goods & services
- Working capital – stocks
of raw materials,
semi-manufactured &
finished goods which
are waiting to be sold
- Fixed capital – is the stock of
factories, offices, plant &
machinery. It is used to
transform working capital
into finished products
- The stock of manufactured
goods used to produce other
goods & services
- ENTREPRENEURSHIP
- An entrepreneur
brings the other factors
together & takes risks
in setting up a business
- An entrepreneur
brings the other factors
together & takes risks
in setting up a business
Anexos de mídia
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