We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Factors of production and circular flow of income - Coursework Example

Comments (0)
Summary
FACTORS OF PRODUCTION AND THE CIRCULAR FLOW OF INCOME Name Institution Tutor Topic Date: Introduction This course work is about factors of productions and circular flow of income. The definition of the two terms is given in details. In details, the importance or advantages of factors of production is analyzed in this paper…
Download full paper
GRAB THE BEST PAPER
Factors of production and circular flow of income
Read TextPreview

Extract of sample
Factors of production and circular flow of income

Download file to see previous pages... These factors are divided into four main categories: Land is the first category; land entails all the natural resources. Labor is another factor which simply refers to man power or human resources available for production through the utilization of natural resources and others. The third factor is capital also referred to as the man-made resources. Last but not least is Enterprise; which combines the other three factors or resources for production purpose. The factors are also classified in terms of management, money, materials and machines (Gitman, & McDaniel, 2009, Pg. 5). Where management depicts land resources, machines refer to labor, capital is equated to materials and enterprise to money. They are termed as factors of production since they are scarce resources, which are useful for the creation of services and goods, though, not for immediate and direct satisfaction of human needs. Economists simplify the different sorts of factors of production into broad categories to assist in understanding these factors of production. Land as a factor of production involves anything that comes from it. The most common land resources include water, oil, minerals, forests, gas and others. The land resources form the raw resources or materials in the production process. Natural resources are classified in three kinds such as chemical nature, their availability and abundances and lastly their distribution. Chemical nature resources entail inorganic resources such as air, minerals and water. Organic resources of the chemical nature refer to animals, plants, microorganisms and fossil fuels. The last chemical nature category includes mixed resources like soils. The other category of land resources is abundance and availability which entails in exhaustible or exhaustible resources. Exhaustible resources entails renewable and non-renewable, whereas renewable resources can sustain themselves or be replaced if properly managed. Non-renewable resources are lost forever once has been used. The distribution category involves national, multinational and international resources, which are used to create resources. The revenue that resource proprietors receive in return for land amenities is known as rent. The next factor of production to analyze is labor. Labor as a factor of production is the effort that human beings contribute to the production of services and goods. Labor resources encompass the activities of the people to facilitate service provision and production of goods to assist in day to day activities. Labor resources are almost contributed by people who have attained age of working to earn. This is because economist says that if one has ever been paid for the work he or she did then in that way has contributed labor resources; thus, has enabled production of goods and services. The income obtained from labor resources is referred to as wages and forms the greatest source of income for the majority. The third resource of production is capital. According to economist, capital as a factor of production refers to tools, machineries or other instruments that humans use to produce goods and services. Capital as a resource of production differs; this is because different services and goods require different resources to produce them. The income that is gained from capital as a fact ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Consumer' Income
This makes sense intuitively since people would like to buy more of a good that costs less than a good which is priced higher. 6. Explain what causes an increase in quantity demanded. Give an example.  In economics, we typically use dimensional graph that has price of the good or services on x-axis and the quantity that people are willing and able to buy on y- axis.
4 Pages(1000 words)Coursework
SAAB's Cash Flow Problems
While people often talk of accrual accounting or matching the revenues and expenses of a period to work out the actual profit or loss incurred, it is the cash in the bank and on hand that are very much the most important indicators of business health. Even so called liquid assets as marketable securities, accounts receivable or merchandise inventory are known to provide much less than their book values in the event of an emergency or business failure.
6 Pages(1500 words)Coursework
Cash Flow Problems
Cash flow on the other hand refers to the inflow and outflow of cash into a business. Car Company Saab had to close down its business operations, after it failed to meet its expenses of paying its suppliers, who in turn stopped supplying the company with requisite materials.
6 Pages(1500 words)Coursework
Factors of production and circular flow of income
Economics model assumes that people are rational meaning they have well-ordered preferences, and want to maximize either satisfaction or profit in order to fully utilize their utility, and they want to do best from the resources that are given to them. Another concept for example used is of ceteris Paribus which is a Latin term for all other things remaining constant.
11 Pages(2750 words)Coursework
Factors of production and circular flow of income
In other words, economics is about efficient allocation of scarce resources (Wessels, 2006). Since resources (factors of production) are very scarce and human wants are unlimited, we have to allocate them efficiently for the welfare of all citizens thus the need for economics.
6 Pages(1500 words)Coursework
Income Tax


 1. Ronni received additional income from investments and property which was included in the Income Statement as shown below: 
Building society income received £5000 
Rent received from rental
8 Pages(2000 words)Coursework
Cash flow
According to the author of the text, cash flow can be defined as the money which comes in and goes out due to different financial, investment operating activities. Controversially, net profit is the amount remained from sales revenue after the deductions of all expenses of the firm.
4 Pages(1000 words)Coursework
Cash Flow Statement
On the other hand, net operating cash flow refers to amount that business remains with after deducting its ongoing expenses from the amount set aside to cater for such expenditure. Conversely, amount available in the business after subtracting expenses does not readily reflect net income of the business since several discrepancies contrast the two figures.
4 Pages(1000 words)Coursework
Income statement
Thus, the revenues of a business are indicators of the business capability to meet its core objective of earning profits. The revenue of a business also indicates the financial performance of the business as a whole as well as the
4 Pages(1000 words)Coursework
The Circular Economy
The electrical parts are not manufactured and are procured from its suppliers and are used in the assembly of the powered garden tools. Manufactured powered garden tools include leaf blowers, hedge trimmers, wood chippers, lawn mowers, etc. The company does
12 Pages(3000 words)Coursework
Let us find you another Coursework on topic Factors of production and circular flow of income for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us