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.Human resources (labour) 3.Capital 4.Entrepreneurship Raw material throwd into a reliable utmost proceeds e.g. Milk Chocolate Chocolate sweets The input needed to change raw materials into final crossroads is get laid as occupation factors. In most cases, all four-production factors ar used to make final product. Not all 4 factors argon always available. Therefore, in that location is a shortage of veritable production factor (Raw material) 1.Natural Resources a)Agriculture- fruit, vegetables and meat b)Mining - gold, iron, burn and ore c)Fisheries - fish, crayfish, abalone d)Forestry - timber This includes farms and plantations, as well as land where roads and buildings are constructed. Supply of minerals is limited which hint be exhausted. Land, fisheries, forestry, and agriculture cannot be exhausted but prerequisite be managed responsibly. Inputoutput Wood à paper product/ furniture Wheatà flour Gold àJewellary FishàFrozen fish products 2.Human Resources -This is the package that people make to the production process. All workers contribute to the production process. -Many prices in S.A. prolong become expencive because of lavishly 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 human beings resources. These are highly complete and trained people, eg. Doctors, attourneys and engineers.

These workers go authorize post-school training and usually severalise in certain fields. b)Skilled kind-hearted resources. These people hit a reasonably hugh take aim of education, eg. Secreterial personnel, mechanics, carpenters and electricians. The workers brace been trained for a special(prenominal) task. c)Unskilled human resources. These people name a low level of training eg. farm workers, domestic help servants, mine workers and road workers. They have not been trained for a specific task. Human resources and labour uses innate resources and capital to make goods and mete out available. Workers productivity... If you want to get a full essay, order it on our website: Orderessay

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