Review of the Factors of Production

2. The Factors of Production
Land Labor
Production
Capital Entrepreneurship

3. Land
Land are the natural resources used to produce goods
and services

5. 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.

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

7. 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.

8. 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.

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

10. The stage used in a U2
concert is considered
capital

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

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

13. 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.

14. 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