Factors of production
What Factors of production means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Factors of production
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Reference: Pearson Edexcel
Economic resources that must be fully and efficiently employed for an economy to reach full capacity output.
The resources required to produce goods and services, namely capital, land, and labour alongside enterprise.
Land, labour, capital and enterprise, which households provide to firms in exchange for factor incomes.
The resources known as land, labour, capital and enterprise, which are limited in supply.
Topics that use Factors of production
- Circular flow of income, expenditure and output (Pearson Edexcel A-Level)
- Factors of production (Pearson Edexcel A-Level)
- The AD/AS model (Pearson Edexcel A-Level)
- The economic problem (Pearson Edexcel A-Level)
Related terms
- Economic agents
- Macroeconomic equilibrium
- Aggregate demand
- Aggregate Demand (AD)
- Capital
- Cost-push inflation
- Costs of production
- Demand-pull inflation
Using Factors of production in the exam
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