FACTORS AFFECTING NATIONAL INCOME.
FACTORS AFFECTING NATIONAL INCOME FACTORS OF PRODUCTION. · Natural resources – if an economy has a plentiful supply of natural resources it may help it to expand. · However, natural resources on their own are not enough. There also have to be the skilled people to exploit the opportunities. ü CAPITAL · More capital generally means more production, and more production means more growth. · To get capital, countries have to invest and so the level of investment may be a big determinant of future growth. ü LAND · Resources like coal, iron & timber are essential for heavy industries so that they must be available and accessible. ü LABOUR & ENTREPRENEUR. · The quality or productivity of human resources is more important than quantity. · Manpower planning and education affect the productivity and production capacity of an economy. 2. TEC