2.2 The Economic Problem

Question 1

What are the Factors of Production ?

Answer 1

Land, Labour, Capital, Enterprise

Question 2

What is Land in the FoP ?

Answer 2

The physical land and natural resources

Question 3

What is Labour in the Fop ?

Answer 3

The people who work for the business, their skills, and qualifications

Question 4

What is Capital in FoP ?

Answer 4

The money and equipment used to produce the product or service, such as machinery or delivery trucks

Question 5

What is Enterprise in the FoP ?

Answer 5

The ability to use land, labor, and capital to create a profit by an individual or comapany.

Question 6

What are Renewable Resources ?

Answer 6

Resources which can be replaced

Question 7

What are Non - Renewable resources ?

Answer 7

Resources that can’t be replaced or reproduced in the near future.

Question 8

What is the Economic Problem ?

Answer 8

• Needs, Wants and Scarcity
• People have an unlimited number of wants with only limited resources so scarcity occurs.

Question 9

What is scarcity in the Economic Problem ?

Answer 9

There is literally not enough resources in the economy to make all goods and services we desire.