The Factors of Production
Transcript of The Factors of Production
![Page 1: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/1.jpg)
Factors of Production
![Page 2: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/2.jpg)
Production
The Factors of Production
Land Labor
Capital Entrepreneurship
![Page 3: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/3.jpg)
Land
Land are the natural resources used to produce goods and services
![Page 4: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/4.jpg)
![Page 5: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/5.jpg)
The energy from the sun is considered land as it is used to produce something of value. In this case we are producing solar energy.
![Page 6: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/6.jpg)
Labor
Labor includes people’s physical and mental talents
and efforts that are used to help produce goods and
services.
![Page 7: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/7.jpg)
The Edge provides his labor services as a guitarist to the band U2. He is not playing just for fun. His labor is producing something of value – a product that is being sold.
![Page 8: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/8.jpg)
A model walking down the runway counts as labor, as long as she is working to produce something of value. In this case she is representing the Alexander McQueen line.
![Page 9: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/9.jpg)
Capital
Capital includes human made resources (buildings,
machinery, and equipment) used to produce goods
and services
![Page 10: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/10.jpg)
The stage used in a U2 concert is considered capital
![Page 11: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/11.jpg)
Entrepreneurship
Entrepreneurship the human resource that combines the other resources to
produce a product, makes nonroutine decisions, innovates, and bears risk
![Page 12: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/12.jpg)
The Fashion Designer who created this design is an entrepreneur who takes the factors of production and produces something of value.
![Page 13: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/13.jpg)
The band U2 are entrepreneurs. They took risks to produce a product, music, in the hopes that people would be willing to buy their music.
![Page 14: The Factors of Production](https://reader038.fdocuments.net/reader038/viewer/2022102717/55a57e051a28ab38468b461c/html5/thumbnails/14.jpg)
J.K. Rowling is worth more than 1 billion through her efforts as the author of “Harry Potter”. Her efforts to write, and film the Harry Potter series were entrepreneurial