Definitions Flashcards
(21 cards)
What are the four factors of production?
Natural Resources, Labour, Capital and Entrepreneurship
What is the Remuneration of Natural Resources?
Rent
What are the Characteristics of Natural Resources?
- Supply is fixed
- They are gifts from nature
- Resources have to be developed
- Resources may be depleted and destroyed.
What are the importance of Natural resources?
- Production of goods and services
- Determines the quantity of the enviroment
- Impacts on the economic development of the country
- Creates jobs
- Created ownership
What is the remuneration of Labour?
Wages and salaries
What are the characteristics of Labour?
- Physically present
- Quality is influenced by emotion
- Cannot be stored
- Quality differs
- Bargaining process
- Occupational and geographical mobility are low
What is the importance of Labour?
- Largest contributor to national income
- Quantity of labour
What influences Natural resources?
Demand, Supply, Quality and location
What influences Labour?
Population growth, Labour force participation rate, migration
What is the definition of Labour?
Labour is any human effort that is mental or physical that is put into the production of good and services with the aim of receiving a reward.
What is the definition of Capital?
Capital comprises all manufactured resources such as machinery, tools or buildings.
What is the definition of an entrepreneur?
It is someone who organizes and assumes the risk of a buisness in return for profit.
What is the remuneration of Capital?
Interest
What are the characteristics of Capital?
- Owned
- Capital must be created
- Supply is not fixed
- Capital increases production
What is the importance of Capital?
Economic growth
What is the remuneration of Entrepreneurship?
Profit
What is Entrepreneurship influenced by?
Economic conditions, demand, price and competitors.
What are the characteristics of entrepreneurship?
- Take initiative
- Combine factors of production
- Bear risk of buying at one price and selling at another
- create new enterprises
- opens new markets
What is the importance of Entrepreneurship?
- Ensures competition
- Creates jobs
- Increases efficiency
- Creates new wealth
- Increases economic growth
What is a marginalized group?
People who do not fully participate in the economy
What do marginalized groups struggle to participate in the economy?
Discriminations, poor education, disabilities, refugees
