The Factors of Production (Grade 11 NSC Matric Economics): Flashcards
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Four factors of production
Four factors of production
Natural resources, labour, capital, entrepreneurship
Natural resources earn
Natural resources earn
Rent
Labour earns
Labour earns
Wages
Capital earns
Capital earns
Interest
Entrepreneurs earn
Entrepreneurs earn
Profit
Renewable resources
Renewable resources
Resources that can regrow (e.g. trees, fish)
Non-renewable resources
Non-renewable resources
Resources that can't be replaced once used (e.g. coal, diamonds)
Three labour skill categories
Three labour skill categories
Skilled, semi-skilled, unskilled
Capital deepening
Capital deepening
Capital per worker increases, boosting productivity
Capital widening
Capital widening
Capital grows at same rate as workforce (constant productivity)