Introduction To Economics

Chapter 30

Economics

The study of how you make your choices and the factors you should take into account before spending your money in order to satisfy all your wants and needs possible.

Factors Of Production

• Land

• Labour

• Captial

• Enterprise

Land

All the natural resources available in a country to produce goods and services

Land Reward

Rent

Labour

The people in a country available to help produce goods and services and the qualifications and skills they have

Labour Reward

Wages

Capital

All human-made things available to help the production of goods and services

Capital Reward

Interest

Enterprise Reward

Profit

What you should take into account when spending income

• Priorities

• Benefits

• Return

What you should take into account when using scarce resources

• Opportunity Cost

• Financial Cost

• Additional Costs

• Benefits to Organisations

• Benefits to Household

• Benefits to Society

• Cost to Society