Factors of Production

ish.dadar
Mind Map by ish.dadar, updated more than 1 year ago
ish.dadar
Created by ish.dadar over 6 years ago
688
0

Description

Land, capital, labour, entrepreneurship

Resource summary

Factors of Production
  1. LAND
    1. All natural resources that are not man made.
      1. Non-renewable resources – e.g. coal, oil, gold. Once used will never be replaced.
        1. Renewable resources – can be used & replaced. E.g. fish stocks, forest, water.
          1. 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.
            1. Non-sustainable – diminish over time due to economic exploitation. E.g. oil
            2. LABOUR
              1. The human input into the production process (workers)
                1. Each worker has a unique set of inherent characteristics – inc. intelligence, manual dexterity, emotional stability.
                  1. But workers are also the product of education & training
                    1. The value of a worker is called his or her HUMAN CAPITAL
                    2. CAPITAL
                      1. The stock of manufactured goods used to produce other goods & services
                        1. Working capital – stocks of raw materials, semi-manufactured & finished goods which are waiting to be sold
                          1. Fixed capital – is the stock of factories, offices, plant & machinery. It is used to transform working capital into finished products
                          2. ENTREPRENEURSHIP
                            1. An entrepreneur brings the other factors together & takes risks in setting up a business
                            Show full summary Hide full summary

                            Similar

                            The skills needed to be a successful entrepreneur
                            rhiannafordx
                            The skills needed to be a successful entrepreneur
                            Rosie Wallis
                            INTRODUCTION TO TECHNOLOGY ENTREPRENEURSHIP
                            nurul atira
                            Ent 201 Midterm
                            barnettalex09
                            BUSS 2 - People in Business
                            Sophie Davis
                            Rickshaw Bank
                            Govind Sharma0886
                            Labour lost power in 1970 because of it's own failings in the years 1964-1970
                            foison2810
                            Motivating and Satisfying Employees and Teams
                            YIN SZE Lim
                            Entrepreneurial Skills
                            Lizzy Driscoll
                            Institutions,Politics&Entrepreneurship
                            cennet-14
                            Module 4 Constructing Deviance
                            rallen3