Factors of Production-4 It answers the question¨How to produce¨ in economics 1-Land - any natural resource that can be used to produce goods and services
´ Renewable resources-can use over and over-
Non renewable resources- once its used up its gone -water, air, fish
- Factor payment- Rent
2- Labour - Human physical and mental effort that can be used to produce goods and services
-Factor payment- Wage
3-Capital'- produced means of production
-Real Capital- product to produve other goods-Machine, tractor, laptop
- Human Capital- improves quality of worker-education, on the job training
- Intellectual Capital - How to make a particular good or service- patents, copy rights
- Factor payment- Interest
4- Enterprise- the organization of land, labour, capital into production. the risk taking aspect of business decision making. innovative spirit and applies abstract ideas in practical ways
-factor payment- Profit1
1-Dr. Stephanie Powers,¨The Basics¨notes, accessed April 14, 2012
It answers the question¨How to produce¨ in economics
1-Land - any natural resource that can be used to produce goods and services
´ Renewable resources-can use over and over-
Non renewable resources- once its used up its gone -water, air, fish
- Factor payment- Rent
2- Labour - Human physical and mental effort that can be used to produce goods and services
-Factor payment- Wage
3-Capital'- produced means of production
-Real Capital- product to produve other goods-Machine, tractor, laptop
- Human Capital- improves quality of worker-education, on the job training
- Intellectual Capital - How to make a particular good or service- patents, copy rights
- Factor payment- Interest
4- Enterprise- the organization of land, labour, capital into production. the risk taking aspect of business decision making. innovative spirit and applies abstract ideas in practical ways
-factor payment- Profit1
1-Dr. Stephanie Powers,¨The Basics¨notes, accessed April 14, 2012