1. Year 10 GCSE Business Studies
Factors of Production
Year 10 GCSE Business Studies

2. There were no cats in the world
What if…
There were no cats in the world

3. Mobile phones were banned
What if…
Mobile phones were banned

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

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

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

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

8. 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

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

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

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

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

13. An example of an Opportunity Cost

14. Why can large supermarkets sell goods cheaply and still make a profit?
Discuss
Why can large supermarkets sell goods cheaply and still make a profit?

15. Which services are provided free of charge?
How are the service providers paid?

16. Plenary
Think of some ‘Opportunity Cost’ ‘-situations that you had over the summer holidays.