Factors of Production
Land
Natural resources that are found in the earth. These resources can be renewable (Renewable resources) or non-renewable (Non-renewable resources). An example of a renewable resource would be trees. Trees will grow again and will/can replenish itself, making it a renewable resource. An example of a non-renewable resource would be metal ores and fuel such as coal. These resources do not grow back and reproduce, making it a limited resource.
Labour
Human resource- any worker who contributes physically or mentally to a product or service is considered labour. Labour is divided by experience, education, skills etc.. These factors decides the pay and position of a worker.
Capital
All the resources used to deliver a service or produce a good. For example, machinery, tools, money, investments are all part of the capital or a company.
Enterprise
The management level of a company. The enterprise or entrepreneur is responsible for managing Land, Labour and Capital. They are not to be mixed with the labour group since they require additional skills.
Natural resources that are found in the earth. These resources can be renewable (Renewable resources) or non-renewable (Non-renewable resources). An example of a renewable resource would be trees. Trees will grow again and will/can replenish itself, making it a renewable resource. An example of a non-renewable resource would be metal ores and fuel such as coal. These resources do not grow back and reproduce, making it a limited resource.
Labour
Human resource- any worker who contributes physically or mentally to a product or service is considered labour. Labour is divided by experience, education, skills etc.. These factors decides the pay and position of a worker.
Capital
All the resources used to deliver a service or produce a good. For example, machinery, tools, money, investments are all part of the capital or a company.
Enterprise
The management level of a company. The enterprise or entrepreneur is responsible for managing Land, Labour and Capital. They are not to be mixed with the labour group since they require additional skills.