Economic Resources

  • Created by: LShan261
  • Created on: 09-04-15 14:47
View mindmap
  • Economic resources
    • Resources = factor inputs
      • scarce relative to infinite needs and wants
    • Four main factors of production
      • Land
        • Natural resources available for production
        • some countries specialise in extraction
          • North Sea Oil and Gas
        • Scarce
      • Labour
        • Human input into the production process
        • UK = 59 million people
          • 35 million of working age
          • 28 million have paid jobs.
      • Capital
        • Investment in goods that can produce other goods in the future
        • Human capital
          • the quality of labour that can be improved through investment e.g. training
        • Fixed capital
          • goods designed to increase the productive potential of the economy in future years
        • Social capital
          • capital created from government investment spending
        • Working capital
          • stocks of finished and semi-finished goods that will be made into finished consumer goods
        • capital investment is important to achieve economic growth in the long run
      • Entrepreneurship
        • skills and abilities that allow risks to be taken and profits to be earned
        • the success and failure of a business is dependant on this factor
    • Free Good
      • a good with zero opportunity cost
    • Economic Good
      • a productor service which can command a price when sold




This is good use of revision.

Similar Economics resources:

See all Economics resources »See all The Economic Problem resources »