1.1.3.1 Economic Resources

Every resource can be categorised by renewable and non-renewable.

Factors of production

A factor of production is a resource in an economy which is used to produce goods and services.

Labour is the workforce of an economy, which consists of the mental and physical efforts of working age people.

Even though you are allowed to work at 16, it does not mean that you are part of the workforce, as education is a legal requirement in the UK.

Enterprise is someone's skill of seeking out profitable opportunities in production in addition to their ability/willingness to take risks.

Capital is a human-made aid to production.

Working capital is the stocks of raw materials which may be used in production.

Fixed capital are things like the machines and buildings used in production.

Land owners may receive rent or lease payments.
If land is a resource (e.g., gold or copper-rich land), then owners may receive a share of some of these goods. This is called a royalty (no, not the King).
Workers may receive wages
For lending physical assets, the reward is rent or interest
Entrepeneurs may earn profit as their reward for organising all the factors of production above