Q: Describe The 4 Factors Of Production

Question 1

What does factors of production mean?

Answer 1

Also known as Resources. These are what are used to provide goods and services.

Question 2

Name the 4 factors of production

Answer 2

Land, labour, capital and enterprise

Question 3

Describe land

Answer 3

Land refers to a natural resource or gifts of nature that are used in the production process such as farms, forests, oceans, animals.

Question 4

Describe labour

Answer 4

The physical and mental effort of a human used to produce goods and services e.g. accountant, bus driver.

Question 5

Describe capital

Answer 5

Man made resources used in production e.g. computer, tractor.

Question 6

Describe enterprise

Answer 6

Enterprise refers to the human talent that coordinates the factors of production to generate a profit (or the risk of a loss) such as Elon Musk, Alan Sugar, Michael Dell, etc.