[RSM100Y1] - Final Exam Guide - Ultimate 165 pages long Study Guide!
Document Summary
Factors of production: four basic inputs for effective operation: natural resources, capital, human resources, and entrepreneurship. Natural resources: all production inputs that are useful in their natural states, including agricultural land, building sits, forests, and mineral deposits. Capital: production inputs consisting of technology (machinery, equipment, etc. things designed to improve production), tools, information, and physical facilities. Human resources: production inputs consisting of anyone who works, including both the physical labour and the intellectual inputs contributed by workers. Entrepreneurship: the willingness to take risks to create and operate a business. The private enterprise system: an economic system that rewards firms for their ability to identify and serve the needs and demands of customers. Adam smith: the father of capitalism: first described the idea of capitalism in his book the wealth of nations, published in 1776, believed an economy is best regulated by the invisible hand of competition.