Factors of Production Flashcards
1
Q
What are the 4 factors of production?
A
Capital
Enterprise
Labour
Land
2
Q
What are the economic resources?
A
The factors of Production
capital, enterprise, labour, land
3
Q
What is interest?
A
the reward for capital
4
Q
What are the rewards for the 4 factors of production?
A
Capital = interest
Enterprise = profit
Land = Rent
Labour = wages
5
Q
What is profit?
A
the money you earned from the enterprise - the amount of money it cost to do.
6
Q
What are wages
A
the money you earn by selling your services (what you pay the workers)
7
Q
what is rent?
A
the money you receive by allowing the use of your land by another party.
