1.1 Main economic groups and factors of production Flashcards
CONSUMER
a person or organisation that directly uses a good or service
GOOD
a tangible product that can be seen and touched
GOVERNMENT
a political authority that decides how a country is run and manages its operation.
PRODUCER
a person, company or country that makes, grows or supplies goods and/or services
SERVICE
an intangible product, i.e. a product that cannot be seen or touched
PRODUCTION
the total output of goods and services produced by a firm or industry in a time period
FACTORS OF PRODUCTION
the resources in an economy that can be used to make goods and services, these are land, labour, capital and enterprise.
LAND
the natural resources of an economy such as farmland and mineral deposits
LABOUR
the workforce of an economy in terms of both their physical and mental effort
CAPITAL
human made aids to production such as machinery
ENTERPRISE
when the factors of production are organised by an entrepreneur to make goods and services
