Factors of production and their rewards Flashcards
1
Q
What is the acronym for factors of production
A
CELL
2
Q
What is C in the acronym and what is the reward
A
Capital - interest
3
Q
What is E in the acronym and what is the reward
A
Enterprise - Profit
4
Q
What is L(1) in the acronym and what is the reward
A
Land - Rent
5
Q
What is L(2) in the acronym and what is the reward
A
Labour - Wage
6
Q
what is opportunity cost
A
cost of the next best alternative foregone
