Factors of Production

LAND
1. All natural resources that are not man made.
2. Non-renewable resources – e.g. coal, oil, gold. Once used will never be replaced.
3. Renewable resources – can be used & replaced. E.g. fish stocks, forest, water.
4. 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.
5. Non-sustainable – diminish over time due to economic exploitation. E.g. oil
LABOUR
1. The human input into the production process (workers)
2. Each worker has a unique set of inherent characteristics – inc. intelligence, manual dexterity, emotional stability.
3. But workers are also the product of education & training
4. The value of a worker is called his or her HUMAN CAPITAL
CAPITAL
1. The stock of manufactured goods used to produce other goods & services
2. Working capital – stocks of raw materials, semi-manufactured & finished goods which are waiting to be sold
3. Fixed capital – is the stock of factories, offices, plant & machinery. It is used to transform working capital into finished products
ENTREPRENEURSHIP
1. An entrepreneur brings the other factors together & takes risks in setting up a business

Resource summary

	Created by ish.dadar over 8 years ago