Factors of production (Limited Resources)

Capital: equipment, materials (生产资料) (Goods used in the supply of other products e.g. tech)
Interest from savings + dividends from shares (Financial investment)

Enterprise: risk, management of other three, the skills of entrepreneurs,
Profits

Land: land and sea, extracted materials
Rental income to owners of land

Labour: physical workforce
Wages and salaries from employment

Factor income is the reward households receive when they sell their factors of production to firms (land = rent; labour=wages; capital=interest)

wage vs salary:
wage per hour, variable
salary per month, fixed

Land Labour Capital
cotton Advertising people telephones
fertile soil ships’ crew shops
orange trees bank clerks lorries
orange orange pickers printing machines
coal package designers factory buildings
water accountants insecticide sprays
wood warehouse workers squeezing machines
shop assistants power stations
lorry drivers roads
calculators

Production

[!def]
using inputs(resources) to produce outputs(goods and services) to satisfy the needs and wants for consumers.

Mobility of factors of production

[!def]
how easy or difficult it is for factors of production to be transferred to alternative industries

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Geographic Mobility: easy to relocate.
Occupational Mobility: easy to change the job.

Factor of production is it mobile why
power station no no alternative use
lorry yes can be used by others, could be sold easily
field used for growing rice yes and no could be used for different crop, sold to another:take time
manager of a factory yes transferable skills
computer yes can be sold easily
shop yes and no to another retailer, for other uses: take time
electrician yes can be transported easily