Ls1 Flashcards
1
Q
What are the factors of production
A
Capital-things used to make goods and services
Enterprise-the willingness of people in business to take risks and make a profit
Land-natural resources such as oil,forest and land itself
Labour-all the work done by humans
2
Q
What is the economic problem?
A
How to use the available scarce resources to satisfy people’s infinite wants and needs as effectively as possible
3
Q
What are economic agents
A
Groups that participate in the economy
4
Q
What do producers do?
A
Create goods and services
5
Q
What does the goverment do?
A
Sets rules that firms must follow and also creates some goods and services like roads and health care
