Business Economics: A basic understanding of the Four Factors of Production (Essential for those just starting to learn Business Economics and understanding the production process)

4 Production factors: 1.Natural resources 2. mankind resources (labour) 3.Capital 4.Entrepreneurship Raw material changed into a legitimate final harvest-time e.g. Milk Chocolate Chocolate sweets The scuttlebutt needed to change raw materials into final products is know as achievement factors. In most cases, all four-production factors argon utilize to make final product. Not all 4 factors are always available. Therefore, there is a shortage of certain production factor (Raw material) 1.Natural Resources a)Agriculture- fruit, vegetables and meat b)Mining - gold, iron, coal and ore c)Fisheries - fish, crayfish, abalone d)Forestry - timber This includes farms and plantations, as well as land where ways and buildings are constructed. come out of minerals is limited which shadow be wear down. Land, fisheries, forestry, and agriculture cannot be exhausted but essential be managed responsibly. Inputoutput Wood à paper product/ fu rniture Wheatà flour Gold àJewellary Fishà glacial fish products 2. tender Resources -This is the parcel that people make to the production process. totally workers contribute to the production process. -Many prices in S.A. prolong become expencive because of senior high remuniration demanded by workers and trade unions. sometimes it is cheeper to import certain products eg. Clothing, butter, shoes. Human resources or labour is devided into 3 groups: a)Professional valet resources. These are super skilled and trained people, eg. Doctors, attourneys and engineers.

These workers go authorized post-school training and unremarkably specialise in certain fields. b)Skilled forgiving resources. These peopl! e ingest a reasonably hugh level of education, eg. Secreterial personnel, mechanics, carpenters and electricians. The workers have been trained for a specific task. c)Unskilled human resources. These people have a misfortunate level of training eg. farm workers, domestic servants, mine workers and road workers. They have not been trained for a specific task. Human resources and labour uses natural resources and capital to make goods and serve available. Workers productivity... If you compulsion to get a full essay, order it on our website: OrderEssay.net

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