00:01
Fatima works in a bakery and earns $120 per week.
00:05
Fatima's grandfather has given her $5 ,000.
00:08
Fatima is going to use this money to start her own business.
00:11
She is going to make cakes for special occasions.
00:20
So the first part is give an example for each of the four factors of production fatima will use in her new business.
00:44
So factors of production as the name applies would be the factors used in the production of the goods or services.
00:51
The first one would be land.
00:55
So she needs a place where she is going to be preparing the cakes.
01:02
So she needs to think about where she will be building her business and how much that's going to cost.
01:15
Then we have labor.
01:18
So this would be the people that she employs to help her and would include consideration of wages.
01:38
Then we have capital.
01:40
So let's talk about what capital is in terms of factors of production.
02:02
It's going to be the machinery, tools, and buildings that will be used in our production.
02:17
Then we have entrepreneurship.
02:33
That is going to be the process of employing innovation and risk taking in a business to generate profit.
02:46
Let's go on to the next part...