LS2 - Economics As A Social Science Flashcards
What is economics?
The study of the economy
What is an economy?
The goods and services produced in an area
What is the difference between a good and service?
A good is tangible and services are intangible
What is the definition of the factors of production?
The resources used to produce goods and services
What are the factors of production?
Capital, enterprise, land and labour
What is capital?
Things used to make goods and services
What is enterprise?
The willingness of people in business to take risks and make a profit
What is land?
Natural resources such as oil, forests and land
What is labour?
The work done by humans in production
What are the two different types of land?
Renewable and non-renewable
What is the economic problem?
How to use scarce available resources to satisfy people’s infinite needs and wants as effectively as possible
What are economic agents?
Groups that participate in the economy
What do firms do?
Create goods and services (producers)
Who buys goods and services from firms?
Consumers
Who can be consumers?
Firms and individuals
