Factors of production

A short presentation on the resources used during the production process.

1. Factors of production

2. Objectives Define “factors of production” Describe four factors of production Identify four factors of production State the payments to the factors of production Classify factors of production

3. What are factors of production? Factors of production are the resources used to produce goods and services These resources are also called inputs.

4. How many factors of production are there?

5. There are FOUR factors of production. Land Labour Capital Enterprise/Entrepreneurship

6. LAND

7. What is land? All the naturally occurring resources (gifts of nature ). Land is also called natural resources .

8. It includes resources found: in the air (oxygen ) in the land (gold ) on the land (forests) in the water (pearls from clams ) The payment for land is rent .

9. Characteristics of land Land is fixed in supply It has no cost of production It is geographically immobile

10. Different types of land

11. Recreation

12. Extraction

13. Agricultural

14. Horticulture

15. Residential

16. Uninhabitable

17. Commercial

18. LABOUR

19. What is labour? All human effort – whether mental or physical that contributes to production Labour is also called human resources Examples – nurses, soldiers, teachers The payment for labour is called wages

20. Types of labour Type of labour Explanation Examples Skilled Semi-skilled Unskilled Professional Little or no formal training Requires some formal training Requires high levels of training Requires high levels of education and professional qualifications Street cleaners Assembly line worker Engineers, mason Doctors, teachers

21. CAPITAL

22. What is capital? Capital refers to all man-made resources used in the production process Examples include machinery And Equipment

23. The payment for the use of capital is called interest .

24. Types of capital Type of capital Explanation Example Fixed Capital that does not change shape during production Tractors, machinery Working Capital that is used up during production Cash, materials Venture Capital invested at the start up of a business Cash

25. ENTERPRISE

26. What is enterprise? This is the ability to combine or organise the other factors of production and to take risks It is also called entrepreneurship The payment for enterprise is profit

27. Examples of entrepreneurs?

28. What did I learn today? Write down two things that you learned today