A
Needs
Essential for living
Wants
Not essential but would like to have
Economic problem
Unlimited wants and limited factor of production
Factors of production
Resources needs to product goods and services
Types of factors of production
Land, Labour, Capital and Enterprise
What is capital
Machinery, Equipment and finance needed for production
What is scarcity
Not enough goods and services to meet the want of the populations
Opportunity cost
Benefit that could be gained from alternative option
Specialization
People and businesses concentrate on what they are best at.
Division of labour
production is divided into different tasks and each worker does that just one of those tasks
Consumer goods
Products sold to final consumers
Capital goods
Business uses these to produce other goods like machinery
Primary Sector
Businesses who extracts natural resources
Examples of secondary sector business
Refining, manufacturing, construction
Mixed economy
Resources owned and controlled by public and private sectors