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Wednesday 3 June 2020

Factors of production

In business studies, we have been looking factors of production. What are the factors of production I hear you say?

Well basically they are what you need to make any good or service. Natural resources (land), Human resources (Labor + Entrepreneurs), Capital resources (What you use to make your product), and finally the good and/or services (What you were making)

Still confused? That's fine. Let me explain. Natural resources (land), anything that came from the earth, (water, dirt, clay, wind, sun, fish, animals,etc). Human resources (Labor + Entrepreneurs), the people who came up with the idea, and the people who made that thing. Capital resources (What you use to make your product), anything that has been made somewhere else, used to make this thing (Buildings, tools, factories, paint, etc) good and/or services (What you were making), the thing you end up selling.

Still confused? Wow. Ok then. Here is an example

Natural resources (land)Human resources (Labor + Entrepreneurs)Capital resources (What you use to make your product),good and/or services (What you were making) 
Soil, water, bees, 
Farmers
Fertilizer, wooden stakes, string, etc
apples

Do you get it now? Good. I'm glad. 😌

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