Factors of Production

Question 1

Where do the roots of globalisation lie?

Answer 1

In international trade and the increasing accessibility of markets

Question 2

What are factors of production?

Answer 2

Productive resources that have to be combined in order to produce goods and services

Question 3

What are the 4 factors of production?

Answer 3

Land
Labour
Capital
Enterprise

Question 4

What does land include?

Answer 4

All natural resources provided by the Earth including minerals, soils, water, forests…

Question 5

What is meant by labour?

Answer 5

The human resource available in any economy

Question 6

What is a key thing for producers to consider in terms of labour?

Answer 6

The quantity and quality of the workforce

Question 7

What is capital?

Answer 7

Any physical resource that can be regarded as a man-made aid for production

Question 8

What do capital flows involve?

Answer 8

The transfer of these physical resources from one place to another

Question 9

What does capital flow refer to in reality?

Answer 9

The flow of investment finance used to provide this capital

Question 10

What is enterprise?

Answer 10

This is a particular form of human capital describing those who take the risk of establishing businesses and organising the production of goods or provision of services