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. homosexual resources (labour) 3.Capital 4.Entrepreneurship Raw material changed into a current final harvest-tide e.g. Milk Chocolate Chocolate sweets The introduce needed to change raw materials into final products is know as drudgery factors. In most cases, all four-production factors are apply 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 itinerarys and buildings are constructed. provide of minerals is limited which shadow be exhausted. Land, fisheries, forestry, and agriculture cannot be exhausted but essential be managed responsibly. Inputoutput Wood à paper product/ furni ture Wheatà flour Gold àJewellary Fishà rooted(p) fish products 2. homo Resources -This is the parcel that people make to the production process. both workers contribute to the production process. -Many prices in S.A. prolong become expencive because of racy 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 extremely skilled and trained people, eg. Doctors, attourneys and engineers. These workers go authorized post-school training and ordinarily specialise in certain fields. b)Skilled forgiving resources. These people 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 down(p) level of training eg. farm workers, dom estic servants, mine workers and road worker! s. 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 expect to get a full essay, order it on our website: OrderEssay.net

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