Econ

Question 1

Factors of production

Answer 1

1.Labour: human resources used in the production, human capital
2. Land: natural resources
3. Capital: physical capital, things made by humans used to produce goods/services (robots, buildings, phone, machinery, infrastructure, software, Internet)
4. Entrepreneurship: management, organising and risk-taking

Question 2

Say’s Law

Answer 2

Say’s Law is an economic principle that states that the production of goods (supply) creates its own demand.

According to Say’s Law, the act of producing goods and services generates income for the producer, employees and input suppliers, which can then be used to buy the goods that have been produced. This process creates a self-sustaining cycle of production, factor incomes and consumption that then drives economic activity