OCR GCSE Economics - 1.1 Key Terms

Consumer

A person or organisation that directly uses a good or service

Producer

A person, company or country that makes, grows or supplies goods and/or services

Government

A political authority that decides how a country is run and manages its operation

Good

A tangible product, i.e. a product that can be seen or touched

Service

An intangible product, i.e. a product that cannot be seen or touched

Production

The total output of goods and services produced by a firm or industry in a time period

Factors of production

The resources in an economy that can be used to make goods and services, e.g. land, labour, capital and enterprise

Land

The factor of production that is concerned with the natural resources of an economy, such as farmland and mineral deposits

Labour

The factor of production that is concerned with the workforce of an economy in terms of both the physical and mental effort involved in production

Capital

The factor of production that relates to the human-made aids to production

Enterprise

The factor of production that takes a risk in organising the other three factors of production. The individual who takes this risk is known as an entrepeneur