Unit 1.1 · What Is Economics? Scarcity, Choice, and Economic Models
Factors of Production
AO2
Syllabus Requirement
Defines land, labour, capital, and entrepreneurship as the resources underlying all production and the basis for income distribution.
Assessment Objectives
AO2Application and Analysis
Summary
Factors of production are essential resources needed to create goods and services, consisting of land, labour, capital, and entrepreneurship. Understanding these factors is crucial for analyzing how economies operate and how resources are allocated to meet human needs and wants.
