Factors of production

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There are four factors of production. They are:

  • Capital - This refers to all of the tools, buildings, machines etc. that are used in the production of goods. It all includes the money the business has and uses.
  • Enterprise - This is carried out by entrepreneurs who:
    • Think of ideas
    • Organise the other three factors of production
    • Take risks with their own money and the financial capital .
  • Land - This is not only the land but it includes all of the natural resources as well, for example, gold, oil, fish and wheat. There are two types of land:
    • Non-renewable resources, for example oil, gas and copper
    • Renewable resources for example, fish, forests and corn.
  • Labour - This is the workforce of the economy. All workers posess different qualities.


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There are four factors of production. They are:

Capital - This refers to all of the tools, buildings, machines etc. that are used in the production of goods. It all includes the money the business has and uses. Enterprise - This is carried out by entrepreneurs who: Think of ideas Organise the other three factors of production Take risks with their own money and the financial capital . Land - This is not only the land but it includes all of the natural resources as well, for example, gold, oil, fish and wheat. There are two types of land: Non-renewable resources, for example oil, gas and copper Renewable resources for example, fish, forests and corn. Labour - This is the workforce of the economy. All workers possess different qualities.

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