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Page 1: Factors of Production
Page 2: Factors of Production

Production

The Factors of Production

Land Labor

Capital Entrepreneurship

Page 3: Factors of Production

Land

Land are the natural resources used to produce goods and services

Page 4: Factors of Production
Page 5: Factors of Production

The energy from the sun is considered land as it is used to produce something of value. In this case we are producing solar energy.

Page 6: Factors of Production

Labor

Labor includes people’s physical and mental talents and efforts that are used to help produce goods and services.

Page 7: Factors of Production

The Edge provides his 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.

Page 8: Factors of Production

A model walking down 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.

Page 9: Factors of Production

Capital

Capital includes human made resources (buildings, machinery, and equipment) used to produce goods and services

Page 10: Factors of Production

The stage used in a U2 concert is considered capital

Page 11: Factors of Production

Entrepreneurship

Entrepreneurship the human resource that combines the other resources to produce a product, makes nonroutine decisions, innovates, and bears risk

Page 12: Factors of Production

The Fashion Designer who created this design is an entrepreneur who takes the factors of production and produces something of value.

Page 13: Factors of Production

The band U2 are entrepreneurs. They took risks to produce a product, music, in the hopes that people would be willing to buy their music.

Page 14: Factors of Production

J.K. Rowling is worth 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