What do businesses do and Factors of production

Question 1

What do Businesses do?

Answer 1

Identify the needs of consumers or other firms.

They then purchase factors of production in order to produce goods and services to satisfy these needs

Question 2

What does business activity produce?

Answer 2

Consumer goods and consumer servoces

Question 3

What is a consumer good?

Answer 3

Physical and tangible goods sold to the general public. They can be classed as durable (cars) and non durable (food)

Question 4

What is a consumer service

Answer 4

Non tangible products sold to the general public i.e. train journeys

Question 5

Name the factors of production

Answer 5

Land, Labour, Capital, Enterprise

Question 6

What is Land?

Answer 6

General term includes land,renewalbe and non renewalbe resources of nature

Question 7

What is labour?

Answer 7

Manual and skilled indiviuals who make up the workforce of a business

Question 8

What is Capital?

Answer 8

This can be finances which help continue business operations or capital goods. These are machinery that help the production of a good/ service

Question 9

What is Enterprise

Answer 9

Risk taking indiviuals who combine other factors of production into a unit capable of producing goods and services

Question 10

What is a capital good?

Answer 10

The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles