Factors of Production Year 10 GCSE Business Studies

What if… There were no cats in the world

What if… Mobile phones were banned

Learning Outcomes £ To know the FOUR Factors of Production. ££ To understand explain the ‘economic problem’. ££ To apply the term ‘opportunity cost’ to a given business situation.

The PURPOSE behind a ‘business’ l Produce goods l Supply goods l Provide a service l Help people

Question!!! Why isn’t everyone in the world owning their own businesses, and making their own fortunes?

Introducing the FOUR Factors of Production (divide page into 4)

1) Land & raw materials • Businesses need ‘land’ – oil, gas, trees, plants • Raw materials help to manufacture products • The world does not have an unlimited supply SCARCITY

2) Labour – workforce l Every business needs workers l Sometimes it is easy to find workers – other times, a job may require highly skilled staff that are harder to find. l Write down some examples of jobs where it is easy to find workers. l Write down some examples of jobs where it is harder to find workers. SCARCITY

3) Capital – machinery, equipment and money! l Capital – money needed to start and maintain a business. l A business will never really have the amount of money it would like. SCARCITY

4) Enterprise l 1. 2. 3. Entrepreneurs Have an idea Ability to take risks Ability to persuade others to join the business and perhaps lend some money 4. Have the energy to keep the business going Are you like this? If not then…? SCARCITY

Opportunity Cost l What are you doing at the weekend? l Any plans? l I have £ 10 to spend l Where could I go? l ‘A’ will cost me £ 8 Come up with some of your OWN l ‘B’ will cost me £ 8 business scenarios. l Can I do BOTH? l Why not?