Topic 1.3 Economic Resources Flashcards
1
Q
What are the four factors of production?
A
Land, labour, capital and enterprise
2
Q
What is capital?
A
Physical goods that can be used in the production process such as : machines and technology
3
Q
What is enterprise/entrepreneurship?
A
Someone who takes risks and innovates. Resources are drawn together into the production process
4
Q
What is land?
A
Natural resources such as oil, coal, wheat,water
5
Q
What is labour?
A
Human capital, the workforce of the economy
6
Q
What is the reward for capital?
A
Interest from the investment
7
Q
What is the reward from enterprise/entrepreneurship?
A
Profit - an incentive to take risks
8
Q
What is the reward for land?
A
Rent
9
Q
What is the reward for labour?
A
Wages
