Resources are important because they are used to make goods. Production means using resources to make and sell goods. Resources are what is used to make goods.
Any activity that fails to satisfy a want is not a productive activity according to economists. So, for example, if resources are used to make clothes nobody wants to wear, televisions that fail to display moving images, clocks that cannot keep time or any other good or service that fails to satisfy a want then those resources have not been used productively.
Factors of production are scarce resources that have been used up to produce goods and services.
All these resources or factors of production are scarce because the time people have to spend working, the different skills they have and the land on which factories, shops and homes are built are all limited to supply relative to our wants.
The main factors of production are:
Land
Also known as natural resources. Land includes the seas and rivers of the world, forests and deserts, all manner of minerals from the ground, chemicals and gases from the air and the earth's crust.
Labour
People who work with their hands and use their brains to help make goods and services provide human resources.
Enterprise
Business know-how, or the ability to run a production process. The people who have enterprise and can control and manage firms are called entrepreneurs.
Capital
Man-made resources which help to produce many other goods and services.
An easy way to remember this is by remembering the word CELL:
Capital
Enterprise
Land
Labour
Or you just learn it the hard way like I did, : )
No es muy hard como lo aprendiste tu
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