The economic problem Flashcards
1
Q
What is Opportunity cost
A
The benefit given up of the next best alternative
2
Q
what is The economic problem (or problem of scarcity)
A
Humans have infinite wants but scarce resources
3
Q
What is an economy
A
Any system that tries to solve the economic problem
4
Q
What is Capital
A
The technology or machinery we use to make goods
5
Q
What is Enterprise/Entrepreneurship
A
An entrepreneur combines and organises land, labour and capital to produce a good
6
Q
What is Land
A
All the earth’s natural resources i.e. physical land but also raw materials
7
Q
What is Labour
A
Human workers used to produce a good
8
Q
What are the Factors of production (CELL)
A
Capital, Enterprise, Land, Labour
