Unit 1.2 - The Basic Economic Problem

Enterprise

________ is the FOP that comes from business know how and management skills.

Geographical immobility

________: cant move land from one country to another.

Consumption

________: Firms produce goods and services to satisfy consumers needs and wants.

Climate factors

________ like wind and sunshine are also renewable sources of land, which can be used for wind and solar farms.

Geographic mobility

________: the resource is able to move from one location to another e.g.

Occupational mobility

________: the resource is able to change task e.g.

Capital

________ is the FOP that comes from tool and materials used to produce goods and services.

Productivity

________: output per input.

Goods

________ that can be used to create ________ or services.

FOP

Land is the ________ that comes from natural resources to produce goods and services.

Net investment

________ is the value of the extra capital good produced.

Money

________ is not a factor of production, it is a medium of exchange.

Geographical mobility

________: someone who successfully started a business in one country can do so in another.

gross investment

It is equal to ________ minus depreciation.

Occupational mobility

________: For example, a tourist bus could be easily repurposed and sold to a freight company.

FOP

Labour is the ________ that comes from human mental and physical skills to produce goods and services.

Geographical mobility

________: For example, a rent- a- car business can sell its cars as a fleet to another rent- a- car business.

Occupational mobility

________: someone who has skills in the car industry can do it in a textile (clothing, design) industry.

Occupational mobility

________: land itself can be used to raise cattle or instead be used to build a stadium.

Occupational mobility

________: For instance, a high- school economics teacher may switch jobs to become a high- school business studies teacher.

Occupational mobility

________ is when the resource is able to change task and geographical mobility is when the resource can move location.

1.2

The Factors of Production

Production

Production of goods and services is organised by entrepreneurs in firms

Consumption

Firms produce goods and services to satisfy consumers needs and wants

Productivity

output per input

Occupational mobility

the resource is able to change task e.g

Geographic mobility

the resource is able to move from one location to another e.g

geographical

land, capital, labor, enterprise

occupational

capital, labor, land, enterprise

Singapore availability

land, enterprise, labor, capital

quality

land, enterprise, labr, capital

Occupational mobility

For instance, a high-school economics teacher may switch jobs to become a high-school business studies teacher

Geographical mobility

An example of geographic mobility of labour is a highly trained individual from an undeveloped economy migrating to an industrially advanced economy

Occupational mobility

For example, a tourist bus could be easily repurposed and sold to a freight company

Geographical mobility

For example, a rent-a-car business can sell its cars as a fleet to another rent-a-car business

Occupational mobility

land itself can be used to raise cattle or instead be used to build a stadium

Geographical immobility

cant move land from one country to another

Occupational mobility

someone who has skills in the car industry can do it in a textile (clothing, design) industry

Geographical mobility

someone who successfully started a business in one country can do so in another