FACTORS OF PRODUCTION

1. Land

1.1. What is it?

1.1.1. natural resources used to produce goods and services.

1.2. Includes:

1.2.1. Land

1.2.2. Anything that comes from land

1.3. The raw materials in the production process.

1.4. Income generated

1.4.1. Rent

2. Capital

2.1. What is capital?

2.1.1. machinery, tools and buildings humans use to produce goods and services.

2.2. Some common examples:

2.2.1. Computers

2.2.2. Forklifts

2.2.3. Delivery vans

2.3. Income generated

2.3.1. Interest

3. Entrepreneurship

3.1. What is an entrepreneur?

3.1.1. a person who combines the other factors of production to earn a profit.

3.2. Examples:

3.2.1. Bill Gates

3.2.2. Mark Cuban

3.2.3. Mark Zuckerburg

3.3. Income generated:

3.3.1. Profit

4. Labor

4.1. effort that people contribute to the production of goods and services.

4.2. Examples

4.2.1. waiters

4.2.2. engineers

4.2.3. artists

4.2.4. pilots

4.3. Income generated

4.3.1. Wages

4.3.1.1. largest source of income for most people

5. What about Money?

5.1. Money is not capital

5.1.1. not a productive resource.

5.1.2. capital are things used to make goods & sevices

5.2. Money is a medium of exchange