1.1 Main Economic Groups and factors and production Flashcards
Consumer
A person that directly uses a good or service
Producer
A person Company or country that makes or supplies goods or services
Good
A tangible product
Government
A political authority that decides how a country is run
Service
An intangible product
Why do consumers buy goods
For personal use not to sell
Production
The total outpout of goods and services produced by a firm in a time period
What are factors of production
The resources in an economy that can be used to make goods or services
What are THE factors of production
Capital
ENterprise
Land
Labour
Capital
Human made aids to production
Enterprise
Taking a risk to combine the other factors of production to create a good or service
Entrepreneur
A person who takes the risk of enterprise
Land
Natural resources used to make goods or services
Labour
Human physical or mental aid to production
How are consumers producers and the government interdependent
Gov may give money to milk companies to increase citizens consumption of milk. Consumers and producers pay taxes to the government.
