Unit 1 - Factors Of Production (FOP)

what are the factors of production

Land Labour Capital Entrepreneurship

Land

natural resources

Labour

Workers

Capital

manufactured resources/infrastructures

Entrepreneurship

combining the FOPs

Acronym

CELL

different types of goods

economic goods vs free goods

economic goods

produced using scarce resources

Problem with FOPs

limited FOP leads to scarcity leads to choice leads to opportunity cost