Limited resources and economic problem Flashcards
(11 cards)
1
Q
What is the economic problem?
A
Resources are limited, but wants are unlimited. Therefore we have to make choices on how to use our resources
2
Q
What are the factors of production?
A
- Land
- Labour
- Capital
- Enterprise
3
Q
What is the land factor of production?
A
Natural resources used to make goods/service
4
Q
Examples of land?
A
- Oil
- Wood
- Water
5
Q
What is the labour factor of production?
A
Human effort used in production
6
Q
Examples of labour?
A
- Construction workers
- Teachers
7
Q
What is the capital factor of production?
A
Man-made tools used to produce
8
Q
Example of capital production?
A
- Machines
- Computer
9
Q
What is the enterprise factor of production?
A
The skills and risks of combining other factors to create a business
10
Q
Examples of entrepreneurs?
A
Give example of extrepreneur
11
Q
What is an opportunity cost?
A
The value of what you give up
