1.1 Main Economic Groups & Factors of Production Flashcards
What are the 3 main economic groups?
Consumers, Producers, Government
What is a Consumer?
A person or organisation that directs uses a good or service.
What is a Producer?
A person, company or country that makes, grows or supplies goods and/or services.
What is a Government?
A political authority that decides how a country is run and manages its operation.
What is a Good?
A tangible product ( A product that can be touched or seen).
What is a Service?
A product that cannot be seen or touched (intangible).
What is Production?
The total output of goods and services produced by a firm or industry in a time period.
What are the Factors of Production?
Land, Labour, Capital, Enterprise.
Define ‘Factors of Production’
The resources in an economy that can be used to make goods and services.
What does Land refer to?
Land refers to the natural resources in an economy (raw materials).
What does Labour refer to?
Labour refers to the human resources that are available.
What does Capital refer to?
Capital refers to human-made aids to production (artificial resources).
What does Enterprise refer to?
Enterprise refers to when the other factors of production are organised to make goods and services.
What is Interdependence?
Where one group responds to the actions of another group.
