Factors Of Production Flashcards
1
Q
Land
A
Natural resources e.g metals, soil, flour.
2
Q
Labour
A
Physical and mental effort e.g workers, chefs.
3
Q
Capital
A
Non-natural resources e.g machinery, tools.
4
Q
Enterprise
A
People to organise, manage, take risks.
5
Q
Opportunity cost
A
Businesses have to make choices about how they use their resources. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone.
