1.3 Economic Resources Flashcards
1
Q
What are the factors of production?
A
- labour
- land
- capital
- enterprise
2
Q
Definition of factors of production
A
resources used to produce goods and services, and inputs in the production process
3
Q
Definition of capital
A
Any resource used to produce resources, machinery and factories
4
Q
Definition of labour
A
The human effort used in production
5
Q
Definition of land
A
naturally occurring goods such as mining, fishing and forestry
6
Q
Definition of enterprise
A
Entrepreneurs combine the other factors of production
7
Q
Definition of scarcity
A
Infinite wants a needs but limited resources to produce the goods and services to satisfy the wants and needs
8
Q
Definition of opportunity cost
A
The cost expressed in terms of the next best alternative sacrificed
