Economic Resources
- Created by: LShan261
- Created on: 09-04-15 14:47
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- 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
- Land
- Free Good
- a good with zero opportunity cost
- Economic Good
- a productor service which can command a price when sold
- Resources = factor inputs
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