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. serviceman resources (labour) 3.Capital 4.Entrepreneurship Raw material changed into a veritable final harvesting e.g. Milk Chocolate Chocolate sweets The stimulant needed to change raw materials into final products is know as payoff 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 tracks and buildings are constructed. translate of minerals is limited which shadow be wearied. Land, fisheries, forestry, and agriculture cannot be exhausted but essential be managed responsibly. Inputoutput Wood à paper product/ furniture W heatà flour Gold àJewellary Fishà wintery fish products 2. humane Resources -This is the parcel that people make to the production process. each(prenominal) workers contribute to the production process. -Many prices in S.A. prolong become expencive because of broad(prenominal) 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 exceedingly skilled and trained people, eg. Doctors, attourneys and engineers.

These workers go authorized post-school training and ordinarily specialise in certai n fields. b)Skilled forgiving resources. T! hese people meet 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 mortified 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 deficiency to get a full essay, order it on our website: OrderEssay.net

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