|
The
are four factors of production:
|
·
|
Capital
This
refers to all of the tools, buildings , machines et cetera used in the
production of goods and the money that firm have and use.
|
|
·
|
Enterprise
This
is carried out by entrepreneurs who:
|
|
|
·
|
Think
of ideas.
|
|
|
·
|
Organise
the other three factors of production.
|
|
|
·
|
Take
risks with their own money and the financial capital of others.
|
|
·
|
Land
Not
only the land, but all of the natural resources as well, e.g., gold,
oil, fish, wheat. There are
two types of land:
|
|
|
·
|
Non-renewable
resources, e.g., oil, gas and copper.
|
|
|
·
|
Renewable
resources, e.g., fish, forests and corn.
|
|
·
|
Labour
This
is the workforce of the economy. All
workers possess different qualities.
|
|
