Factors of Production

• Land represents all natural resources, such as timber, gold, water, oil, copper, natural gas, coal, and forests, used in the production of a goods.

• Labor includes all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all other factors of production.

• The entrepreneur also takes on all of the risks and rewards of the business.

• Capital is made up of all of the tools, machinery hammers, forklifts, conveyer belts, computers, and delivery vans, used to produce a good or service.
  
   

Write a letter to a friend telling them that you are planning to start a business. In the letter, include the name of the business and the products it offers as well as the factors of productions that you already have and the ones you will need to establish the business. Also, the factors of production should be categorised under the correct headings.

Use your tablets to go on You Tube or consult other materials to get additional information about the factors of production. Divide the questions into sections in which you are expected to spend ten minutes to come up with the name of the business and the product/s it will be offering and another fifteen minutes to decide which factors of production the business will already have and what are the other factors necessary in starting the business.

Be prepared to present the results of the task both orally and written. The written letter should be summitted via email and a short video should be done of you explaining what is in the letter.  

Feedback will be given via email, and if you have any comments or questions you can also send me an email.

Factors of production is an economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. The factors of production include land, labor, capital and entrepreneurship. Land represents all natural resources, such as timber and gold, used in the production of a good. Labor includes all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all other factors of production. The entrepreneur also takes on all of the risks and rewards of the business. Capital is made up of all of the tools and machinery used to produce a good or service.