1.1 - Coggle Diagram
What role do Consumers have in the economy?
Buys goods and services for personal use
They are the end user of a good
Consumers make choices about their spending by weighing up thesatisfaction from using the good against the price they would be paying
Consumers generally act on an individual basis and have little power in the market. They may need protecting by the government through legislation.
What is Capital as a factor of production?
All human-made aids to production.
All artificial resources that are inputs into production and all infrastructure:
The reward for offering capital for use is interest.
What role do the Government have in the economy?
They make and enforce rules within the country they run. Some of these rules will directly affect consumers or producers.
Governments spend money in the economy. Government also transfers money to individual consumers, enabling them to spend. Governments act as buyer of goods and services and as producers.
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) and the health of the population.
The reward for offering labour for use is wages.
What are Factors of Production? What does CELL stand for?
The resources in an economy that can be used to make goods and services.
They are categorised into: Capital Enterprise Land Labour
What is Enterprise as a factor of production?
The organisation of the other factors of production to make goods and services
The reward for offering enterprise for use is profit.
What role do Producers have in the economy?
Supply goods and services. They make choices about what andhow they produce. They have influence over the quantity, price and quality.
What is Land as a factor of production?
All natural resources in the economy are classed as land. The reward for offering land for use is rent.