Factors of Production (Junior Cert Business Studies): Flashcards

Resources needed to create goods & provide services

Land, Labour, Capital, Enterprise

All natural resources from earth used in production

Rent

Farmland, forests, seas, minerals, wind/solar energy

Renewable can be reused (wind); non-renewable get exhausted (oil/coal)

All human effort, skills & abilities used in production

Wages or salaries

Human-made resources that help produce goods & services

Interest

Capital is human-made, land is provided by nature

Skill to combine all factors to create goods/services for profit

Profit (or loss if business fails)

Enterprise: spot opportunities, take risks, organise factors