1.1.3 The economic problem Flashcards
1
Q
Opportunity Cost
A
The next best alternative
The benefit forgone of the next best alternative
2
Q
4 Factors of production
A
C - Capital -> (man made resources used to produce goods/services)
E - Enterprise -> Willingness + ability to take risks of combining other 3 factors to produce a product/service
L - Land -> Natural resources used in production
L- Labour -> All productive human effort, paid or unpaid
3
Q
Renewable Resources
A
Resources that can be replenished when used
4
Q
Non - Renewable resources
A
Natural resources that can’t be replenished/replaced at a quick enough pace for consumption.
