Ch.7 Factors of Production

4 Factors of Production
1. Land
  1. Land resources
    1. Renewable
      1. Definition
        Once land resources have been used they cannot be replaced
      2. Example
        Coal
        Gold
        Diamonds
        Oil
    2. Non-renewable
      1. Example
        Fish
        Forests
        Water
      2. Definition
        Land resources that are replaced by nature
2. Capital
  1. Definition
    1. Also called as an artificial resource
      1. Because it is made by labour
  2. 2 Types of Capital
    1. Working Capital or Circulating Capital
      1. Refers to..
        Stocks of raw meterials
        Stocks of finished goods that are waiting to be sold
        Components that will be used up in production
    2. Fixed Capital
      1. Refers to..
        Factories
        Offices
        Shops
        Machines
        Tools
        Equipments
        Furnitures
      2. Used in production to..
        To change working capital into Goods&Services
3. Enterprise
  1. Enterprenuers
    1. Responsible for setting up and running business
    2. They come up with business idea
    3. They are business owners
      1. They usually provide money to help set up a business
    4. They are risk takers
    5. They are responsible for organising resources
4. Labour
  1. Definition
    1. Workforce in the economy
      1. Each workers have different skills, knowledge, intelligence and emotions
Production
1. Example
  1. A baker using flour, yeast, salt and water to make bread
  2. A large manufacturerusing people to assemble components to make laptop computers
  3. A dentist using a dental instruments to extract a diseased tooth
  4. A taxi driver using a car and petrol to transport a family from their home to an airport
2. Resources
  1. Goods
    1. Examples
      1. Foods
      2. Medicines
      3. Craft meterials
    2. Non-Examples
      1. Teachers
      2. Chef
      3. Doctors
  2. Services
    1. Examples
      1. Tourism
      2. Dog walking
      3. Fence painting
    2. Non-Examples
      1. Reading a book
      2. Riding a bike
      3. Taking a test

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Ch.7 Factors of Production

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	Created by Hyunju Ham (Melanie) over 8 years ago