Nature Amd Purpose Of Economic Activity Flashcards
What is Land?
The stock of natural (environmental) factor resources available for production.
What is labour?
The quantity & quality of all human inputs into the production process, also known as man made capital.
What is enterprise?
Entrepreneurs organise factors of production & take risks when seeking profitable market opportunities & who combine the other 3 factors to create a product/service
What is capital?
Man-made goods used to supply other products such as technology, factories & software.
What is capital?
Man-made goods used to supply other products such as technology, factories & software.
What is ‘money’ referred to as in economics?
Financial capital
What does economic activity describe?
How well firms, governments and consumer (households) interact with each other.
What is the central purpose of economic activity?
The production of goods and services to satisfy ever-changing needs & wants.
What is meant by “production”?
The process that converts inputs into outputs. (Of goods and services)
What is the LAND factor income?
Rent
What is the LABOUR factor income?
Wages
What is the CAPITAL factor income?
Interest
What is the ENTERPRISE factor income?
Profit
What does consumption describe?
The buying and using of goods and services by households.
What are consumer goods?
Those that give customers satisfaction- pizza
