SA economy Flashcards
Production factors
- Natural resources
- Labour
- Capital
- Entrepreneurship
Natural resources
resources provided by nature
Labour
Physical energy and mental effort of your daily work in a factory or office
Capital
Human made goods or assets such as machinery factories factured by business to assist in the production of goods
Entrepreneurship
Someone who can recognise economic needs using the production factors
Economics
Economics is the study of the way in which human beings employ scare resources to satisfy their many needs
economic systems
- Traditional system
- Free market
- Mixed capitalism
Traditional system
Economic decisions are based on tradition not growth
command system where small group decides for the population
Free market
Households and business are entitled to improve their own welfare.
Supply and demand determines the nature of the goods and services produced
Mixed capitalism
The philosophy is one of freedom of economic choices while the government plays a significant role
