"The factors of production are those resources that help to produce a product or provide a service" (Delaney 2010, p.126) A huge amount of resources are needed in order to produce any given product or to provide a service and these resources can be divided up under four headings: Land, Labour, Capital and Enterprise.
LAND, LABOUR, CAPITAL AND ENTERPRISE
Land = anything provided by nature that helps to produce good and services e.g.. land, mineral resources, water and climate.
Capital = anything that is made by humans that is then used to help produce other goods and service (i.e. money and the things money can by) e.g. machinery, buildings, roads, equipment and vehicles.
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Labour = any human effort that helps to produce goods or services, i.e.the workforce.
Enterprise = that special form of human activity that organises the other factors of production and bears the risk involved in the production i.e. entrepreneurs.
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(Delaney 2010, p.126-128; Roche & Cusack 2011, p.214)
question |
Think of all the factors of production which would be needed in order to produce a new chocolate bar. Write out the four headings and fill in the appropriate resources under them.
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Lesson Idea |
Watch the video below, or any video from the "How it's Made" series depending on what is of interest. Make a note of the different factors of production which you see in the process of production and discuss once the video is over.
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