Factors of production 1

Slide 1

by  Peter Jones
Introduction to economics

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There are 4 types of Resources required to produce any product. ‘Land’ - all natural resources ’Capital’ - all man-made resources includin ’Labour’ - paid employment of worker which is a human resource ’Enterprise’ - the human resource that organises the other factors of production and takes the risk of their decisions -  
‘Resources’ or ‘Factors of Production’

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Categories of Resources  required to produce a good or service ‘Land’ - all natural resources not just the area of land.  It includes the resources in the sea e.g. fish; resources on land e.g. forests, rivers and resources in the atmosphere e.g. the weather. ’Capital’ - all man-made resources ranging from simple hand-held tools to complex automated machinery as well as the buildings where production occurs.  The national infrastructure such as roads, bridges and telecommunication are also included as ‘Capital’ ’Labour’ - paid employment of workers which is a human resource ’Enterprise’ - the human resource that organises the other factors of production and takes the risk of their decisions.  An organising and risk taking factor.
‘Resources’ or ‘Factors of Production’

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