introduction to the factor markets

Question 1

name the 4 factors of production !

Answer 1

land - anything supplied by nature that helps in the production of wealth

labour - human activity directed towards the production of wealth

capital - anything man made that helps in the production of wealth

Enterprise - a person who combines the other f.o.p., takes up the risk in setting up a firm

Question 2

what are specific and non-specific factors?

Answer 2

a specific factor of production is one that is so specialized that it doesn’t have many different uses, e.g. milking machine, a lawnmower.

non-specific factors of production can have many different uses, e.g. farmland used for growing crops or pasture or a smartphone used as a camera