Factors of Production Flashcards

All 6 cards in this deck

Name the four factors of production.

Land, labour, capital and enterprise.

What is 'land' as a factor of production?

The natural resources a business uses, including the site it occupies and raw materials taken from the earth.

What is 'labour' as a factor of production?

The workforce needed to produce a product or service.

What is 'capital' as a factor of production?

The equipment or machinery used to provide the goods or services.

What is 'enterprise' as a factor of production?

Organising the resources to take a risk or capitalise on a business opportunity — the entrepreneur leading the business.

What is opportunity cost?

Something that is given up in order to do something else when choosing between alternative options.
e.g. spending limited funds on a new van means giving up the advertising campaign.