business - Factors of production and added value

0.0(0)
studied byStudied by 0 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/7

flashcard set

Earn XP

Description and Tags

1.3, 1.4

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

8 Terms

1
New cards

Factors of production

Capital, enterprise, land, labour

2
New cards

Capital

Man made item to help with production

3
New cards

Enterprise

The person who organises, makes decisions and takes risks

4
New cards

Labour

The people who are able to work

5
New cards

Land

Natural resources

6
New cards

Added value

selling price - total cost

7
New cards

What is added value

how much more a business sells a product for than the total cost of materials

8
New cards

Ways to increase added value

  • Increase selling price while keeping the cost of materials the same

  • Decrease the cost of materials while keeping the selling price the same