Capital Resources | Derived demand | Entrepreneur | Factors of Production | Human Resources | Interest | Interest-reward for capital resources | Natural Resources | Non-Renewable Resources | Profit | Profit-reward for entrepreneurship | Renewable Resources | Rent | Rent-reward for natural resources | Resources | Wages | Wages-reward for human resources
Define the term factors of production.
Factors of production (or resources) are the economic inputs used by producers in the production process. Resources can be classified as natural resources, capital goods, human resources and entrepreneurship.
The economic term for the work and effort of people, e.g. driver, worker is?
Which factor is the reward rent paid for?
Distinguish between entrepreneurship (enterprise) and labour.
Enterprise requires an element of risk taking/organises the resources for profit, while labour is the human effort that earns wages.
State the factor reward (or payment for the use) of human resources.
The various factors of production earn different factor incomes. Wages are:
Wages are the reward for human (labour) resources.
A dairy farm uses many resources while producing milk. Identify a natural resource.
Grass, water, cows, land.