Economic resources Flashcards
1
Q
What are the factors of production?
A
Capital
Enterprise
Land
Labour
2
Q
What is land?
A
The stock of natural factor resources available for production, Any natural resource
3
Q
What is labour?
A
Quantity and quality of human input into the production process
4
Q
What is enterprise?
A
Entrepreneurs organise FOP and also take risks to exploit the market opportunities
5
Q
What is capital?
A
Goods made by people that are used to supply other products eg. machines, tech, plant and software
6
Q
What are capital goods?
A
Goods that are used to make consumer goods and services
7
Q
What are consumer goods?
A
Goods that we consume
8
Q
What is automation?
A
Replace or enhance labour
9
Q
What are non renewable resources?
A
- Finite in supply
- Crude oil, coal, natural gas, other fossil fuels
- Rate of extraction of finite resources depend on the current market price
10
Q
What are renewable resources?
A
- Replaceable if the rate of extraction is less than the natural rate at which it renews
- Solar energy, tidal power, oxygen, biomass, fish stocks and forestry
