Factors of Production

Agriculture, fishing and trapping, mining, water, fuel and energy, and logging and forestry

Everything in the world is made from only six types of natural resources

Includes all the physical and mental
work needed to produce goods or services

Labour is a very expensive cost of doing
business, and many firms are constantly
looking for way to save money, so they
use outsources

People who control the factors of production

Management allocates the company resources, both capital and human, and decides whats purchase, what to make. Whom to hire, where to sell. Higher level managers also decide how a business's profits will be distributed

To produce goods and services
competitively in a global economy
requires information.

New technology, customers, competition, political conditions and sources of supply

Any goods used in the manufacturing
of other goods.

Ingredients: The raw materials that
go into a product.

Supplies: The raw materials that do
not become part of new product.

Capital is the money invested in a business

cash, stocks, bonds, accounts, receivable