Scarcity+ choice 1.1.1 Flashcards
1
Q
What are the 4 factors of production?
A
Capital
Enterprise
Land
Labour
2
Q
What does capital mean?
A
man-made aids to production i.e machinery
3
Q
what does enterprise mean?
A
ristakers who produce goods and services after combining CELLS.
4
Q
What does land mean
A
where goods and services are produced
5
Q
what does labour mean
A
human resources where goods and services are produced
6
Q
3 questions a firm should always ask
A
- what to produce-depends on consumer goods
- how to produce-minimise scarce resources
- whom to produce for-those who have income
7
Q
what does opportunity cost mean
A
This is the cost of the next best alternative foregone when choices have to be made.
