Factors of Production
Storyboard-Text
- I've always wondered how goods get produced in these factories?
- Why don't we ask for a tour?
- What exactly goes into producing these products?
- All production starts from land, labour, capital and entrepreneurship
- Land is all of the natural resources found on earth.
- Would the examples be minerals, oil, woods and animals
- Would that mean capital is the resources made for production?
- Exactly! and labour is time and effort that humans put into making all goods and services
- Capital is also divided into three categories: fixed, physical and working
- So working capital is the money used to buy the goods and services?
- Yes! physical capital is the physical resources available to a business
- So human capita is the experience that result in knowledge or skills to produce goods and services
- Entrepreneurship is the innovation, skill, vision and creativity required to start a business
- Thank you for the tour! Now we both have a better understanding of how economy works!
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