The Nature And Purpose Of Economic Activity

Question 1

Goods

Answer 1

physical product you can touch (toys, new factory)

Question 2

Services

Answer 2

intangible things ( e.g teaching, train journey)

Question 3

Factors Of Production (FOP)
what is it and what is it used for?

Answer 3

‘Inputs’ used in producing goods and services for the economy, used to make outputs (things people want)

Question 4

Name the factors of Production (CELL)

Answer 4

Capital
Enterprise
Land
Labour

Question 5

Capital

Answer 5

Equipment used in producing goods/services (machine factories, computers, assembly line) - man made resources

Question 6

Enterprise

Answer 6

A person/business who takes the initiative to set up a business and employ other FOPs - bringing them together ( e.g needs capital goods, need labour, need land)

Question 7

Land

Answer 7

Raw materials/natural resources available from nature e.g oil, coal, fruit, meat- available from mining fishing etc

Question 8

Labour

Answer 8

work done by people who contribute to the production process