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Factors of production
The document defines factors of production as the resources used to produce goods and services. It identifies the four main factors of production as land, labor, capital, and enterprise. It provides details on each factor, including definitions, types, and the payments made to each.
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Introduction to factors of production, objectives include definition and classification.
Factors of production are resources for goods/services; there are four: land, labor, capital, entrepreneurship.
Exploration of land as a factor; includes natural resources, payment as rent, and its unique characteristics.
Different types of land discussed: recreation, extraction, agricultural, horticulture, residential, uninhabitable, commercial.
Definition of labor as human effort in production; includes definitions, examples, and types of labor.
Capital as man-made resources in production; includes types and examples like fixed, working, and venture capital.
Enterprise as the organization of other production factors and risk-taking; payment is profit.
Encouragement to reflect on lessons learned during the presentation.
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Factors of production
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- 2. Objectives Define “factorsof production” Describe four factors of production Identify four factors of production State the payments to the factors of production Classify factors of production
- 3. What are factorsof production? Factors of production are the resources used to produce goods and services These resources are also called inputs.
- 4. How many factorsof production are there?
- 5. There areFOUR factors of production. Land Labour Capital Enterprise/Entrepreneurship
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- 7. What is land? All the naturally occurring resources (gifts of nature). Land is also called natural resources.
- 8. It includesresources found: in the air (oxygen) in the land (gold) on the land (forests) in the water (pearls from clams) The payment for land is rent.
- 9. Characteristics of land Land is fixed in supply It has no cost of production It is geographically immobile
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- 19. What is labour? All human effort – whether mental or physical that contributes to production Labour is also called human resources Examples – nurses, soldiers, teachers The payment for labour is called wages
- 20. Types oflabour Type of labour Explanation Examples Skilled Semi-skilled Unskilled Professional Little or no formal training Requires some formal training Requires high levels of training Requires high levels of education and professional qualifications Street cleaners Assembly line worker Engineers, mason Doctors, teachers
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- 22. What is capital? Capital refers to all man-made resources used in the production process Examples include machinery And Equipment
- 23. The paymentfor the use of capital is called interest.
- 24. Types of capital Typeof capital Explanation Example Fixed Capital that does not change shape during production Tractors, machinery Working Capital that is used up during production Cash, materials Venture Capital invested at the start up of a business Cash
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- 26. What is enterprise? This is the ability to combine or organise the other factors of production and to take risks It is also called entrepreneurship The payment for enterprise is profit
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- 28. What did Ilearn today? Write down two things that you learned today