Factors of production 1

Introduction to economics

• by
• Peter Jones

‘Resources’ or ‘Factors of Production’

• 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’

• 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.

Slide 4