Factors of Production Flashcards

Vocabulary flashcards covering the four factors of production and their definitions based on the lecture material.

Factors of production

The resources needed to produce goods and services.

Land

All natural resources that can be obtained from the land or sea, which can be renewable and non-renewable. Examples include minerals, fish, forest, oil, gas, solar and wind.

Labour

The skills and number of people who make the goods and services, such as miners, factory workers, and doctors.

Capital

The man-made resources and finance needed to produce goods and services, including machinery, vehicles, finance, and buildings.

Enterprise

The person or people who take the risk of setting up a new business and are responsible for organising the other factors of production.

Entrepreneurs

The specific term for the people who take the risk of setting up a new business and organise the other factors of production.