Factors Of Production C2 Flashcards
(15 cards)
What are the four Factors of Production?
Capital, Enterprise, Land and Labour
What is the definition of Capital?
Man made goods that help to manufacture or produce goods for consumers.
What is the definition of Enterprise?
Willingness to bear uncertain risks and make decisions for a business.
What is the definition of Labour?
Human effort used in production.
What is the definition of Land?
A gift that occurs naturally, natural resource.
What is the definition of Geographical mobility?
How easily a factor of production can change locations. (i.e. employees outstations, change location of factory, etc.)
What is the definition of Occupational mobility?
How easily a factor of production can change uses. (i.e. land originally used for coal mining can be used for another purpose)
What are the factors that affect the quantity of Enterprise?
The number of entrepreneurs, taxes on firms profits.
What are the factors that affect the quality of Enterprise?
Education, Training, Healthcare, Experience.
What are the factors that affect the quantity of Capital?
Old/Outdated machinery, Investments (spent on capital)
What are the factors that affect the quality of Capital?
Advancements on technology.
What are the factors that affect the quantity of Labours?
Retirement age, Size of population leaving school, Attitude towards working (women: acceptable to work?)
What are the factors that affect the quality of Labours?
Education, Training, Skillset, Background, Experience
What are the factors that affect the quantity of Land?
Amount of land cannot change.
Renewable resources: can be used again and again.
Non-Renewable resources: will deplete
What are the factors that affect quality of Land?
Fertiliser (land becomes more fertile)
