Factors of Production as Inputs to Output

Slide notes that treat the factors of production as the parameters which determine the output of any production process, with input as the starting point and output as the end point. Production is defined as the transformation of resources such as men, material and time into a more useful commodity or service, illustrated by steel from iron ore and by services such as medical care, consultancy and hospitality. Labour is the human power used at every stage of manufacturing or assembling and is split into mental and physical labourers; capital is distinguished from its accounting meaning of share capital and defined as that part of wealth used for production; and the entrepreneur, from the French entreprendre, is described through the qualities of organisation, professional approach, risk bearing, decision making and negotiation.