General-eco Flashcards
What are the three economic questions?
What to produce?
How to produce?
For whom to produce?
What are the economic resources?
Land, labour, capital, enterprise.
Explain land.
Refers to any resources found naturally. Eg minerals, forests, fertile agricultural land, water, oceans.
Explain labour.
The work input - the physical or mental contribution by people to transform other elements in the mix. Eg. Carpentry, teaching, waiters, chefs, cleaner, solicitor.
Explain capital.
Refers to any man-made item used in the production process. Eg. Cooking appliances, ovens, fridges, fridges, tables, chairs.
Explain enterprise.
The ability to combine resources and take advantage of market opportunities. A person uses initiative, drive and personal goals to start and maintain a business. Eg. Bill Gates used enterprise to set up Microsoft.
What is the difference between needs and wants?
A need is a basic necessity to live, whereas wants are not necessities but for pleasure.
