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 potpourrid into a reliable net reaping e.g. Milk Chocolate Chocolate sweets The input needed to change raw materials into final harvest-times is go as work factors. In most cases, all four-production factors argon used to make final product. Not all 4 factors are always available. Therefore, thither is a shortage of authoritative production factor (Raw material) 1.Natural Resources a)Agriculture- fruit, vegetables and meat b)Mining - gold, iron, ember 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 after part be exhausted. Land, fisheries, forestry, and agriculture cannot be exhausted but indwelling be managed responsibly. Inputoutput Wood à paper product/ furniture Wheatà flour Gold àJewellary FishàFrozen fish products 2.Human Resources -This is the dissever that people make to the production process. All workers contribute to the production process. -Many prices in S.A. prolong become expencive because of advanced 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 homo resources. These are highly mean and trained people, eg. Doctors, attourneys and engineers.

These workers go received post-school training and usually define in certain fields. b)Skilled merciful resources. These people keep a reasonably hugh level of education, eg. Secreterial personnel, mechanics, carpenters and electricians. The workers hand been trained for a particular(prenominal) task. c)Unskilled human resources. These people welcome a low level of training eg. farm workers, house servant servants, mine workers and road workers. They have not been trained for a specific task. Human resources and labour uses graphic resources and capital to make goods and exercise available. Workers productivity... If you want to get a full essay, order it on our website: Ordercustompaper.com

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