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gcse economics
factors of production
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Sebastien Detulleo-Fuller
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Cards (15)
Factors
of production
The inputs into a production process in order to achieve an
output
The
four factors of production
Land
Labour
Capital
Enterprise
Land
Natural resources such as agriculture,
fishing
, forestry,
oils
Labour
The
skills
available and
characteristics
of the workforce
Capital
Investment in
man-made aids
to production such as factories and
machinery
Enterprise
The risk undertaken by an entrepreneur in
transforming
the other factors of production into output in order to gain a
reward
, normally profit
Economic
resources
The factors of production that earn reward for their use in the form of
rent
,
wages
, interest and profit
Production
process
Firms
take the factors of production and turn them into products that they sell for
profit
Factor
inputs
The factors of production that producers input into the production process
Factor
output
The new products created by adding
value
to the factor
inputs
Land
Below the earth e.g. oil
On the earth e.g. crops
Above the earth e.g. birds
In the sea e.g. fish
Human
capital
The
value
of a worker based on their skills,
qualifications
and experience
Capital (as a factor of production)
The money paid for the
man-made
aids used in the production process e.g. equipment,
premises
Entrepreneur
Takes
land
,
labour
and capital and organises them to produce profitable products, creating wealth and employment
Rewards
to the factors of production
Rent
(for land)
Wages
(for labour)
Interest
(for capital)
Profit
(for enterprise)