T12 - 2

Question 1

What is another description for the inputs of production?

Answer 1

Factors of production

Question 2

List the 4 factors of production. Give a short description and example of each.

Answer 2

1. Natural resources (land)

• Things provided by nature that people use to produce goods and services.
• Example: land, air, water, animals, plants

2. Labour

• The people involved in the production process.
• Example: Workers and managers

3. Capital

• All the man-made objects that are used in the production process.
• Example: buildings, machines, money

4. Entrepreneurs

• The people who start businesses.

Question 3

Name the 2 types of outputs.

Answer 3

1. Goods - physical products that are made and sold.
2. Services - Providing a service