1.1 Main economic groups & factors of production Flashcards
What are the 3 main economic groups?
Consumers, government, and producers
What is a consumer?
A person or organisation that directly uses a good or service
What are producers?
Producers supply goods and services.
What is a government?
A group of people that has the power to run a country
What does the government do?
- Make and enforce rules
- Spends money in an economy
- Implement policies
What are factors of production?
The resources in an economy that can be used in the production process
What are the 4 factors of production?
Capital, enterprise, land, and labour
What does land refer to?
The natural resources in an economy.
What does labour refer to?
The human resources that are available
What is meant by enterprise?
When the other factors of production are organised to make goods and services
What does capital cover?
The human-made aids to production
