what are factors of production?
the resources needed for production of goods and services Land, Labour, Capital and Enterprise
what is land?
all natural resources used to produce goods and services eg: cotton, coffee reward: rent
what is labour?
human efforts used to produce goods and services (mental, physical, skilled or unskilled) eg: teacher, doctor reward: wages/salary
what is captial?
man-made resources used for the production of goods eg: furniture, vehicle reward: interest
What is enterprise?
Skill of creating the good or service, ability to make risks and make decisions known as entrepreneur eg: managers and owners reward: profit
Mobility
geographically- capable of moving from one location to another location Occupationally- capable of changing its use
mobility of land
Occupationally mobile Geographically immobile
mobility of labour
-can have high occupational mobility if workers have the right skills and qualifications -can be geographically mobile depending on ability to move and transportation facilities, housing and cost -can also be geographically and occupationally immobile due to lack of skills
Mobility of capital
-can be geographically and occupationally mobile depending on use of the capital eg: a pen is occupationally and geographically mobile -can be occupationally mobile and geographically immobile eg: a building
Mobility of enterprise
Geographically and occupationally mobile
what is quantity in factors of production?
the volume of resources available
what is quality in factors of production?
how useful or productive its factors of production are
quantity of land
amount of physical land does not change much (slight increase and decrease)
Quality of land
depends upon soil, fertility, weather etc
quantity of labour
depends upon size of population and other determinants of labour force
quality of labour
depends upon skill, education, training, qualifications and health of workforce
quantity of capital
Influenced by investment tends to increase with time
quality of capital
advances in technology enable capital goods to produce a higher output and a better quality output
quantity of enterprise
influenced by favourable economic conditions that produce entrepreneurs
quality of enterprise
depends on how well it is able to satisfy and expand demand in economy in cost-effective and innovative ways