Production involves converting resources into goods or services. There are four factors of production: Land, Labour, Capital and Enterprise.
Complete the diagram below summarising the four factors.
1. Complete q1 a) and b) page 31 on the handout
2. Explain the difference between labour intensive and capital intensive production
Labour intensive production
Capital Intensive production
Specialisation and Division of labour
1. What is meant by specialisation?
2. What is meant by the division of labour? Use an example from the case study on page 32 in your answer.
3. Extension task: Chapter review – Dragon toys. Answer all questions. A hint for question F is to look at the section titled, ‘The Changing relationship between enterprise, capital and labour’, on page 32.