Factors of production
All natural resources
what are needs?
These goods are consumed by firms and used in the production of other goods such as factories, offices, roads, machines, tools and equipment.
What are capital goods?
Machinery
We have unlimited/infinite wants, but limited/finite resources.
what is the economic problem?
shows combinations of two goods (usually capital and consumer goods) which could be produced by an economy if all its resources were employed fully and efficiently.
what is a PPC/ PPF?
what is an enterprise?
Goods can be produced using a variety of different production methods.
when economy produces inside the PPC
what is unemployment of resources?
nurses, doctors, oxygen tank, medicines, physical land, masks, surgical instruments etc
what are the factors of production required for a Hospital?
once goods have been produced, there has to be a method of distribution. This means that the goods have to be shared in some way between members of the population. For example, should everyone get exactly the same quantities or should some receive more than others
Whom to produce for?
immigration
increasing birth rates
reducing school leaving age,
increasing retirement age,
investment in capital goods,
training and education,
increased quantity and quality of capital
Research and development
what are the factors that cause economic growth? or cause PPC to shift outside.