The Factors of Production

The Factors of Production

• 1.
  Factors of Production
• 2.
  The Factors ofProduction Land Labor Production Capital Entrepreneurship
• 3.
  Land Land arethe natural resources used to produce goods and services
• 5.
  The energy fromthe sun is considered land as it is used to produce something of value. In this case we are producing solar energy.
• 6.
  Labor Labor includespeople’s physical and mental talents and efforts that are used to help produce goods and services.
• 7.
  The Edge provideshis labor services as a guitarist to the band U2. He is not playing just for fun. His labor is producing something of value – a product that is being sold.
• 8.
  A model walkingdown the runway counts as labor, as long as she is working to produce something of value. In this case she is representing the Alexander McQueen line.
• 9.
  Capital Capital includeshuman made resources (buildings, machinery, and equipment) used to produce goods and services
• 10.
  The stage usedin a U2 concert is considered capital
• 11.
  Entrepreneurship Entrepreneurship thehuman resource that combines the other resources to produce a product, makes nonroutine decisions, innovates, and bears risk
• 12.
  The Fashion Designerwho created this design is an entrepreneur who takes the factors of production and produces something of value.
• 13.
  The band U2are entrepreneurs. They took risks to produce a product, music, in the hopes that people would be willing to buy their music.
• 14.
  J.K. Rowling isworth more than 1 billion through her efforts as the author of “Harry Potter”. Her efforts to write, and film the Harry Potter series were entrepreneurial