Using an example, explain the term ‘factors of production’. (5 Marks)
Factors of production is an economic term that sets out the input that are used the prouction of goods and services to be sold on a market for profit. These factors of production are land, labor, capital and enterprise. An example of a ‘capital’ factor of production could be a machine within a factory this is used in the production of a good, for example the production of cars.
BP
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