1.2 the factors of production at University of Birmingham

• solar energy 
• wind energy 
• hydropower
• geothermal energy 
• biomass energy 

solar energy is radiant light and heat from the sun that is harnessed

free goods are items we may need or want that are without limit 

consumption is the using up of goods and services to satisfy consumer needs and wants 

a consumer good is an economic good that satisfies an immediate consumers need or want 

capital goods are human-made resources used in the production of other goods and services 

the money invested in capital goods by a firm is called capital 

geographically immobile workers are reluctant to move to jobs in different locations because of family ties or because moving can be expensive 

• an increase in rent may persuade more landowners to release their land into productive resources
• new discoveries of natural resources and new equipment and techniques can improve the amount it is possible to extract 
• making use of other unused natural resources
• planting more trees and plant 
• recycling and re-using durable consumer goods and capital goods that we no longer use or want 

• an increase in wages may persuade more people to supply their labour to firms 
• an increase in the working population age 
• improvement in healthcare reduces the number of days people are absent from work 

• a decision by producers to produce more capital goods 
• an increase in interest payments will increase the amount of capital investors are willing to supply to firms 

• advances in technology improves the speed and accuracy of modern equipment