Factors of Production

The resources necessary to produce a good or provide a service.
(there are 4 categories)

Untitled Slide

• (C)apital
• (E)ntrepreneurship
• (L)and
• (L)abor

C E L L

Capital

The machines, buildings, and tools used to make other G/S

Entrepreneurship

Initiative, innovation, vision, and the willingness to take a risk (of losing everything you own)

Land

natural resources (minerals, water, surface land)

Labor

workforce or human resources

Factors of Production

• Capital
• Entrepreneurship
• Land
• Labor
• CELL

Factor Market

where productive resources are bought and sold

Product Markets

where producers offers goods and services for sale

Specialization

people, businesses, regions, or countries concentrate on producing a G/S better than anyone else

Division of Labor

breaking a job down into small tasks performed by several workers

The End