Factors of Production (A level Econ)

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There are four Factors of Production; CELL

CAPITAL; this refers to all the tools, buildings, machines etc that are used in production of goods. it alos refers to the money the firm have and use.

ENTERPRISE; this is what entrepreneurs do: think of ideas, organise the other three factors of production and take risks with their own money and the financial capital of others.

LAND; not only the land that the business is on but the natural resources as well, e.g. gold, oil, fish, wheat. there are two types of land;

• non-renewable resources e.g. oil, gas and copper,
• renewable resources e.g. fish, forests and corn

LABOUR; the workers of the workforce. All workers possess different qualities.

Links

Revision note on factors of production [1]

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