Capital: The stock of goods used to make other goods and services
Capital goods (^) Capital - money
Firm needs capital (money) what its spent on is the capital
The reward or payment is interest
Enterprise: The risk takers, the "movers and shakers" that organise/make production happen.
Catalysts for action because they take risks
The reward or payment is profit.
National economy must make choice, use resources avilable to produce:
1. Consumer goods
Enable consumers to meets needs and wants
EG: Washing machine/iPod (Durable)
Chocolate/soap (Non-Durable)
Known as Final Goods
Purchase of these is Consumption
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