{"id":2763,"date":"2023-02-19T16:10:46","date_gmt":"2023-02-19T16:10:46","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/learn-it-1-2-1-factors-of-production\/"},"modified":"2023-07-20T16:59:46","modified_gmt":"2023-07-20T16:59:46","slug":"learn-it-1-2-1-factors-of-production","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/learn-it-1-2-1-factors-of-production\/","title":{"raw":"Learn It 1.2.1: Factors of Production","rendered":"Learn It 1.2.1: Factors of Production"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n \t<li>Identify the four factors of production<\/li>\r\n \t<li>Distinguish between the four factors of production<\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Factors of Production<\/h2>\r\nAll businesses, both for-profit and nonprofit, need resources in order to operate and produce something to sell.\r\n\r\n<section class=\"textbox keyTakeaway\">\r\n<h3>inputs and outputs<\/h3>\r\nResources are the <strong>inputs<\/strong> used to produce <strong>outputs<\/strong> (goods and\/or services). Inputs for a restaurant include the labor of the employees, the cooking equipment in the kitchen, and the ingredients for the food on the menu. A restaurant's outputs include food and serving customers.\r\n\r\n<\/section>A resource needs to be productive. A resource is productive because it can be used to create something else. Resources are also called <strong>factors of production<\/strong>.\r\n\r\n<section class=\"textbox keyTakeaway\">\r\n<h3>factors of production<\/h3>\r\nThere are four categories of resources, or factors of production:\r\n<ul>\r\n \t<li>Natural resources (land)<\/li>\r\n \t<li>Labor (human capital)<\/li>\r\n \t<li>Capital (machinery, factories, equipment)<\/li>\r\n \t<li>Entrepreneurship (somebody who recognizes a profit opportunity)<\/li>\r\n<\/ul>\r\n<\/section><section class=\"textbox tryIt\">[ohm2_question height=\"400\" hide_question_numbers=1]3005[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li>Identify the four factors of production<\/li>\n<li>Distinguish between the four factors of production<\/li>\n<\/ul>\n<\/section>\n<h2>Factors of Production<\/h2>\n<p>All businesses, both for-profit and nonprofit, need resources in order to operate and produce something to sell.<\/p>\n<section class=\"textbox keyTakeaway\">\n<h3>inputs and outputs<\/h3>\n<p>Resources are the <strong>inputs<\/strong> used to produce <strong>outputs<\/strong> (goods and\/or services). Inputs for a restaurant include the labor of the employees, the cooking equipment in the kitchen, and the ingredients for the food on the menu. A restaurant&#8217;s outputs include food and serving customers.<\/p>\n<\/section>\n<p>A resource needs to be productive. A resource is productive because it can be used to create something else. Resources are also called <strong>factors of production<\/strong>.<\/p>\n<section class=\"textbox keyTakeaway\">\n<h3>factors of production<\/h3>\n<p>There are four categories of resources, or factors of production:<\/p>\n<ul>\n<li>Natural resources (land)<\/li>\n<li>Labor (human capital)<\/li>\n<li>Capital (machinery, factories, equipment)<\/li>\n<li>Entrepreneurship (somebody who recognizes a profit opportunity)<\/li>\n<\/ul>\n<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm3005\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=3005&theme=lumen&iframe_resize_id=ohm3005&source=tnh\" width=\"100%\" height=\"400\"><\/iframe><\/section>\n","protected":false},"author":21,"menu_order":10,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Factors of Production\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Practice Questions\",\"author\":\"Robert Danielson\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2754,"module-header":"learn_it","content_attributions":[{"type":"original","description":"Factors of Production","author":"Linda Williams and Lumen Learning","organization":"","url":"","project":"","license":"cc-by","license_terms":""},{"type":"original","description":"Practice Questions","author":"Robert Danielson","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2763"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":8,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2763\/revisions"}],"predecessor-version":[{"id":7709,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2763\/revisions\/7709"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2754"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2763\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2763"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2763"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2763"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}