A construction firm converts inputs (factors of production) to output (houses) - Leaving Cert Economics - Question 3(a) - 2017
Question 3(a)
A construction firm converts inputs (factors of production) to output (houses).
State and explain the four factors of production that might be used to produce houses... show full transcript
Worked Solution & Example Answer:A construction firm converts inputs (factors of production) to output (houses) - Leaving Cert Economics - Question 3(a) - 2017
Step 1
Land
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Answer
Land refers to anything supplied by nature that is necessary for the production process. In the context of constructing houses, this includes agricultural land or forests that provide timber. Additionally, the location of the land can significantly impact the demand and value of the houses built on it.
Step 2
Labour
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Labour involves the human effort required in the construction process. This includes the work performed by skilled tradespeople such as block layers, electricians, and plumbers, who are essential for building the structure and ensuring it functions properly.
Step 3
Capital
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Capital consists of man-made wealth that includes machinery and equipment used in the production of houses. For instance, tools like JCBs and cranes are crucial for site preparation and construction, enhancing productivity and efficiency during the building process.
Step 4
Enterprise
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Enterprise refers to the ability and initiative of individuals to combine the other factors of production to create goods and services. In this case, it includes the property developers who take the risks involved in setting up a business and are vital for guiding the project from conception to completion.
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