The Nature And Purpose Of Economic Activity

Question 1

What is the purpose of economic activity?

Answer 1

To utilise resources to meet wants and needs.

Question 2

What do consumer wants and needs determine?

Answer 2

What should be made, how it is produced and whom it is produced for.

Question 3

What are the 4 factors of production?

Answer 3

• land (land, minerals, animals and plants)
• labour (human effort, physical/intellectual)
  -Capital (all man made goods to aid production, e.g. tools, buildings.)
• Enterprise (risk taking, new ideas)