intro to economics

what are the factors of production

land, labor, capital, enterprise

what are the main economic groups

consumers, producers, government

what is a consumer

a person or organisation that buys goods or services for their personal use and create demand for them

what is a producer

individuals, groups or country that supply goods and services

government

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

how do consumers and producers interact

consumers buy from producers

how do consumers and government interact

consumer pays taxes

how do producers and consumers interact

producer hires consumers

how do producers and governments interact

pay taxes towards them

how do governments and consumers interact

JSA

how do governments and producers interact

subsidies

land

all natural resources available for production in an economy

labour

the human contribution to the production process

capital

man-made aids to the production process

enterprise

when someone takes a risk to organise the other factors of production to form a business

wants

things that are desired but not essential to survival

opportunity cost

the benefit foregone of the next best alternative when making a choice

unlimited wants

The infinite desire for something

basic economic problem

there are finite resources available to supply infinite or unlimited needs and wants

economic sustainability

impact of economic choices on economics objectives such as employment and growth now and into the future

environmental sustainability

impacts of economic choices on the environment now and into the future

what is the reward for land

rent

reward for labour

wages

reward for enterprise

profit

reward for capital

interest

needs

things that are required for survival

scarce resources

The amount of resources available is limited to satisfy all demand

social sustainability

impact of economics choices on society’s quality of life and well-being now and into the future

economic choice

an option for the use of selected scarce resources

good

tangible product

service

intangible product