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Economics 1.1 - Coggle Diagram
Economics 1.1
Key Vocab
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Producer - a person, company or country that makes, grows, or supplies goods and/or services
Enterprise - The factor of production that takes a risk in organising the other factors of production
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Why are factors of production offered for use in the economy? How can factors of production be combined for the good of society?
Factors of production are the resources in an economy that can be used to make goods and services. These can be categorised into - Capital Enterprise Land Labour
Land as a factor of production is a natural resource in the economy and the reward for offering land for use is rent.
What is capital as a factor of production? - All human-made aids to production and all artificial resources that are inputs into production and infrastructure - Technology, Infrastructure, Machines
What is labour as a factor of production? - All human resources that are available in the economy.
Will depend on Size and Age of the population, the Working age in a country and the impact of Migration, quality of workforce(level of Education and Training) and the Health of the population
What is enterprise as a factor of production? - The organisation of the other factors of production to make goods and services. It requires an individual entrepreneur to: Organise production and Bear the risks of the project.
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