1.3 Economic Resources

Question 1

What are factors of production?

Answer 1

Resources used by firms in order to produce goods and services. Factor inputs.

Question 2

What is the LAND part of factors of production?

Answer 2

Natural resources available for production

Question 3

What is the CAPITAL part of factors of production?

Answer 3

Goods used in the supply of other products. E.g technology

Question 4

What is the LABOUR part of factors of production?

Answer 4

Human input into the production process

Question 5

What is the ENTERPRISE part of factors of production?

Answer 5

Organisation of factors of production in order to produce

Question 6

How do factors of production/economic resources earn reward?

Answer 6

In the form of rent, wages, interest and profit

Question 7

What is human capital?

Answer 7

The value of an employee. A worker can be valued by the income they earn, education and training. These are likely to increase your human capital.

Question 8

What does captial mean in terms of factors of production?

Answer 8

As a factor of production it refers to the man-made aids that are used in the production process e.g. machinery, tools, factories and offices.