1.3 Economic Resources Flashcards
What are the four factors of production
-land
-labour
-capital
-enterprise
What actually is production?
Process or set of processes that convert inputs into outputs
Inputs are used to make
-consumer goods and capital goods
What are capital goods used for?
To create more consumer goods
What actually is a consumer good?
A good which is consumed by individuals or households to satisfy wants or needs
What is a capital good?
A good which is used in the production of other goods and services
Why is an entrepreneurial different to the other factors of production?
He/she devices how much of the other factors are actually used
What is the entrepreneurial’s profit
Profit left over after the cost of the factors of production are taken away from revenue
What are environmental resources?
Resources that comprise all the natural resources that are used in an economic system
-physical resources
-gases
-abstract resources(wind or solar energy)
How can environmental resources be split up
Renewables
Non-renewables
What are renewable resources
Reproductive and permanently maintainable
What factor of production do environmental resources fall under?
Land
