Part 1 Flashcards
3 main economic groups
Consumers, producers and government
Consumers are
The buyers of goods and services
Producers are
The sellers of goods and services
Government are
A group of people who have the power to run a country
Interdependence
Means the economic actions of one group are likely to impact another
4 factors of production
Land
Labour
Capital
Enterprise
Land is
Includes all raw materials that are naturally occurring
Labour is
The work force, it is affected by the quantity and quality of people able to work
Capital is
Includes different types of machines and infrastructure
Enterprise
This function is perform by entrepreneurs
Debtors of production definition
The resources in an economy that can be used to make goods and services
Land definition
The natural resources available for production in an economy
Capital definition
The man made aids to production in an economy
Labour definition
The workforce available for production in an economy
Enterprise definition
The factor of production that involves taking a risk organising the other three factors in production
