Tag: labour
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Enterprise-factor of production
Enterprise The people who bring the other 3 factors of production together to produce goods and services are called entrepreneur. In this process they do the decision making and risk taking.
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Capital-factor of production
Capital Manmade goods to produce other goods and services Capital is classified into capital goods and consumer goods Examples: Machines Factories Roads
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Labour-factor of production
Labour Manual and mental effort to produce or deliver goods and services People who are willing or able to work are known as labour work force. Examples: Clerks Computer technician level Economics Teacher
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Land-factor of production
Land Natural occurring resources used for production purpose Examples: Earth on which mills are built Water in which fish is found Raw materials used to produce goods
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Nature of the economic problem
Nature of the economic problem The fundamental economic problem arises due to scarcity Scarcity is when there are insufficient resources to satisfy everyone’s wants and needs Finite resources and unlimited wants