chapter 2 - factors of production Flashcards
1
Q
definition of:
factors of production
what are the f.o.p?
A
resources required to produce goods and services
-land, labour, capital, enterprise
2
Q
definition of:
land, labour, capital, enterprise
A
land- natural resources available to produce goods and services
labour - human input in the production line
capital - manufactured resources required in production process
enterprise - the skills a business person requires to combine and manage the other three f.o.p
3
Q
definition of:
geographical mobility
A
labour is willing and able to move to different locations for employment purposes
4
Q
definition of:
occupational mobility
A
labour is able to move between jobs to retrain and improve their skills
5
Q
causes of changes in the quality and quantity of f.o.p
A
- cost of f.o.p (high labour costs due to increase in min wage - demand for labour decrease)
- net migration of labours
- introduction to automation
- gov policies affect cost of production (lower income taxes create incentives to work)
- improvement in education and healthcare
