1.1 Main economic groups and factors of production

CONSUMER

a person or organisation that directly uses a good or service

GOOD

a tangible product that can be seen and touched

GOVERNMENT

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

PRODUCER

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

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, these are land, labour, capital and enterprise

LAND

the natural resources of an economy such as farmland and mineral deposits

LABOUR

the workforce of an economy in terms of both their physical and mental effort

CAPITAL

human made aids to production such as machinery

ENTERPRISE

when the factors of production are organised by an entrepreneur to make goods and services