Definitions & Concepts
The process of creating goods and services to satisfy needs and wants.
What is production?
Land receives this type of reward.
What is rent?
Resource used to make aluminum, found in Jamaica.
What is bauxite?
Buildings and machinery are examples of this.
What is fixed capital?
The reward for enterprise.
What is profit?
Name the four main factors of production.
What are land, labour, capital, and enterprise?
The physical and mental effort of people in production.
What is labour?
This natural resource makes Trinidad and Tobago rich in energy.
What is oil or natural gas?
Cash and stock of goods fall under this.
What is working capital?
The special skill of organizing and taking risks.
What is entrepreneurship?
Give one example of a consumer good.
What is a TV, food item, or clothing?
The person who organizes other factors and takes risks.
Who is an entrepreneur?
Used in making cement products, found in Barbados and Jamaica.
What is limestone?
Venture capital is used for what?
What is financing risky new businesses?
A business owner who starts something new.
Who is an entrepreneur?
Which factor of production earns interest as a reward?
What is capital?
Example of a skilled worker.
What is an electrician or plumber?
This renewable natural resource provides solar energy.
What is the sun?
Give one example of a producer good.
What is machinery or tools used in production?
Name one way entrepreneurs contribute to national development.
What is creating jobs or innovation?
Explain the difference between needs and wants.
Needs are essential for survival, while wants improve quality of life.
Why is land considered a “fixed” factor?
Because its quantity cannot easily increase.
One way land quality can be improved.
What is using fertilizers or reforestation?
Explain the main difference between fixed and working capital.
Fixed = long-term assets; Working = short-term, used up quickly.
Why might an entrepreneur make a loss instead of a profit?
If expenses are higher than revenue or demand is low.