The Economic Prolem Flashcards
1
Q
Economics is
A
How best to satisfy infinite desires using limited resources
2
Q
4 factors of production
A
Land
Labour
Capital
Enterprise
3
Q
Land
A
including all the natural resources in and on it.
4
Q
Labour
A
The work done by people
5
Q
Capital
A
Equipment used in producing goods and services
6
Q
Enterprise
A
Willingness to take a risk to make a profit
7
Q
Scarcity requires
A
The careful allocation of resources
8
Q
Goods
A
Physical product you can touch
9
Q
Services
A
Intangible things
10
Q
Economic agents react to
A
Incentives
11
Q
3 economic agents
A
Producers
Consumers
Governments
12
Q
Producers
A
Firms or people that make goods or services.
13
Q
Consumers
A
People or firms who buy the goods or services
14
Q
Governments
A
Government sets the rules that participants in the economy have to follow, but also produces goods and services.
