factors of-production-
Post on 13-Apr-2017
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Factors of Production
Definitions and Examples
Factors of Production are…
The resources used to make goods and services
Separated into three categories Land Labor Capital
Land
For Economic purposes, Land refers to all Natural Resources
Examples: Minerals Timber Real Estate
Labor
For Economic purposes, refers to the actual work an individual or individuals does
Examples: Un-Skilled Labor Semi-Skilled labor Skilled Labor Professional Labor (All 4 Categories show “work” being done)
Capital
For Economic purposes, Capital refers to man-made or possessed resources used to produce something else and falls into two categories Physical Capital
The tools or equipment used in production Human Capital
The skills or training of the workers Don’t confuse this with Labor (The actual
performance of work using your human capital)
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