Main Econmic Groups And Factors Of Production Flashcards
Define consumer
A person or organisation that directly uses a good or service
Define producer
A person company or country that makes , grows or supplies goods and/or services
Define government
A political authority that decides how a country is run.
Good
A tangible product i.e product that can be seen or touched
Define Service
S An intangible product,i.e a product that cannot be seen or touched
Define profit
The amount of money a producer has left after all costs have been paid
What influences consumers ?
They are influenced by how much benefit they will gain from a good.
What are producers influenced by?
They are influenced by how much benefit they receive from a good .
How is Government influenced?
They are influenced by wanting the best for society.
How can producers maximise profits and what does it effect?
By choosing how and what they produce. This affects quantity, price or quality or goods produced.
What are the four key factors of production?
- Land
- Labour
- Capital
- Enterprise
These factors affect the quantity and quality of output.
What does ‘land’ refer to in the context of factors of production?
All raw materials that are naturally occurring, e.g. oil, trees, the sea, and soil.
Land is a crucial resource for production.
Define ‘labour’ as a factor of production.
The workforce, affected by the quantity and quality of people able to work, particularly influenced by education and health.
Quality of labour impacts productivity.
What is included in ‘capital’ as a factor of production?
Different types of machines and infrastructure, e.g. roads used in the manufacture of goods and services.
Capital is essential for efficient production.
What role does ‘enterprise’ play in production?
Performed by entrepreneurs who organize the other factors of production to create goods and services and bear the risks of the production process.
Entrepreneurs are key to innovation and business development.
True or False: An entrepreneur does not bear any risks in the production process.
False
Entrepreneurs take on risks associated with their business ideas.
Fill in the blank: The entrepreneur decides on the quantities of the different factors of production to combine and _______ them during production.
[organizes]
Organization of factors is critical for successful production.
