Factors of Production Video Lecture | Business Economics for CA Foundation

in this lesson we are going to talk
about the factors of production what are
the factors of production well they're
pretty much just the different elements
that go into the production of a good as
you can see I've split the canvas into
four different sections representing
each of the four different factors of
production
I'd also include a little blurb that
kind of describes what they are and a
little bit well go ahead and go over
what these are with pictures so what is
land well land is not just a land that
we walk on it's also the natural
resources from that land and labor is
human work that goes into the production
of a good capital are pretty much goods
that help in the production of other
goods which we'll see an example a
little bit and an entrepreneurship just
brings these three together to produce a
good so it's kind of that
entrepreneurial ability to green any
other factors and then produce it good
now let's get rid of this text and show
examples of pictures so here we have
what looks like a worker and since by
some judging by his yellow hat let's
assume he's a construction worker at the
hardhat so let's go ahead and move them
over to labor because this is going to
be an example of human work being used
in the production of a good for example
it might be a building or it could be a
factory which is the next example and
you might want to say that's land
because it's built on land or for it's a
good that comes from the land but is
actually a capital good and here's why
we use factories to build other goods
right like assembly lines and all that
so a factory even though it's on land
it's a separate factor all together
because that factory produces other
goods so it's basically a good that
helps in the production of other goods
and if you remember we just talked about
definitions that's what a capital good
is however trees
our factor production of land or it's a
land factor production and this is ops
because they come from the land and then
here the last one we have an
entrepreneur who's just kind of looking
all these different goods and how can
you innovate or how can you create them
maybe he's already created them and now
you might be wondering or if you're not
this is one thing you're going to have
to know with the factors of production
is how do they generate income and
here's how the green is pretty much how
they are an income for a land it's rent
so you usually have to run out a piece
of land and you have to pay money and
that's how the landowners make an income
through that rent laborers or pretty
much any human worker earns wages and
that's pretty self-explanatory I'm sure
we all know what a wage is capital earns
interest you usually have to pay
interest on investments in capital goods
are pretty much as investments for
production there's also more details in
a map before this lesson and you just
need to know that interest is how
capital goods are an income then
entrepreneurs or entrepreneurship
factors or contra factors production
earn income through profits and this is
usually through businesses sales revenue
costs all that and you might be
wondering where is money in this like
where would money fall in these four
different categories money is actually
not a factor of production so money
might facility facilitate trade but it
has no impact in the fat and the
production of a good it might be able to
buy different themes to produce a good
but money itself cannot produce good
that's why it is not included in either
or any of these four sections and that
concludes our lesson on factors of
production you have any questions make
sure you leave a comment in our comment
section down below
on our YouTube channel if not States
next lesson and I'll see you there