1.1 Main economic groups and factors of production Flashcards
What are the factors of production?
- Land
- Labour
- Capital
- Enterprise
What are the main economic groups?
- Producer
- Consumer
- Government
Define enterprise
The factor of production that involves taking a risk and organising the other three factors of production
How are the factors of production combined?
Enterprise –> land, labour, capital –> goods and services produced
Define producer
A person, company or country that makes, grows or supplies goods or services
Define labour
The workforce available for production in an economy
Define consumer
A person or organisation that directly uses a good or service
Define capital
The man-made aids to production in an economy
Define government
A political authority that decides how a country is run and manages its operation
Define land
The natural resources available for production in an economy
