Four Factors Of Production: Practice Problems Included!

good morning afternoon evening night whenever you're watching this welcome to the mr. sin Channel today for economics we're going to be talking about the factors of production so sit back subscribe to the video because of course why not it's free support the channel and let's figure out what the factors of production are now before we get started make sure you take out your guided notes you can find them in the description below the guided notes will go along with the video and I'll help you remember all the important concepts it'll be important for you to

do this so that way when you have your test or quiz you know all the information and you don't have to go back and re-watch this now the factors of production are used to produce things in our society the factors of production are land labor capital and entrepreneurship these are the things that get used to produce stuff now it seems very simple and that's because they kind of are just think about it it's logic you have to have land to be able to produce whatever you want to make you have to have labor to have

people that are willing to spend their time and energy to produce your product you have to have capital capital meaning money and the tools to be able to build whatever you are deciding to produce and the Entrepreneurship that's the idea you have to have an idea for your company the idea to create the product the idea of the product when you have these four things you have the factors of production now the factors of production get used in a bunch of different ways it depends on what country you live in it depends on the business

hours the services that are going to be provided all these things have to go into it but the factors of production hopefully aren't that complicated now we're going to do some practice problems and see if you can identify which of the factors of production are being used all right so now during these practice problems if you ever need more time just pause the video but our first one is on the screen right now this picture which of the four factors of production do you think are being used here you have land capital labor or entrepreneurship

huh take your time alright if any more time positive but if you think you got it and if you said land you are correct yes all resources would be part of land so that would include water and coal and iron and all these different things that we take from the world alright next practice problem let's see if you can get this one alright so we've bunch of pictures up again I think you can figure it out any more time pause the video if you guessed entrepreneurship you are correct this is showing the ideas that come

to create a product the idea that sparked the innovation alright let's go to another one all right we have the picture up on the board right now it's a wonderful picture if I do say so myself and if you need more time make sure you pause the video and if you said labor you are correct it is labor that's right labor these are the people who are producing it they're not the people that came up with the original idea but they're the people working to create this product all right let's go into some word problems

next alright so run to the word problems now and remember all the answers will be land labor capital or entrepreneurship those are our four factors of production make sure you remember those because those will be important all right our first problem is up you have an idea to start a business and you decide to take a risk and do it which of the four factors of production is it take your time think it through alright if you need more time pause the video but if you said land you are absolutely incorrect I apologize it is

entrepreneurship entrepreneurship there you are coming up with the idea for the business and you're gonna take the risk to do it alright let's say you do start your business and now you have to go and purchase office supplies to be able to run your day-to-day operations which of the four factors of production is being shown here think about it and then you got it deep no oh no pause the video then if you need to the answer is capital that's right it is capital you have to go out and purchase things for the day-to-day operations

even those office supplies are capital goods if you remember from the economic question video we talked about capital goods if you need a refresher you can click the card on the top right and check that out all right we'll do one more word problem and it is this your prompt is water iron coal which of the four factors of production was just shown if you need more time make sure you pause that video if not and if you said land you are absolutely correct hopefully now the four factors of production are making sense they're not

too difficult but they're really important for us to understand because this is how we produce things businesses have to figure out what they're going to do with the four factors of production what resources are they going to use how will they use them eventually we'll be getting into PPF charts and looking at how do we use resources efficiently what happens when we use them inefficiently so it'll be important to have this foundation before we get into the more complicated things as always thank you for watching the video I hope it helped you understand the factors

of production if you liked the video subscribe and if you didn't subscribe anyways why not it's free I'm mr. Sinha and until next time I will see you online thank you for stopping by and learning today