What is the cause of the economic problem?
Unlimited wants + limited resources = Scarcity of Factors of Production
There are 4 Factors of Production:
· Land: Natural resources such as oil, gas, metals, fields and forests. Anything that nature has to provide.
· Labour: The efforts of people needed to make products.
· Capital: Finance, machinery and equipment
· Enterprise: Risk taking ability of brining factors of production to produce a good or a service.
What are the main objectives in a business?
· To make profit.
· To increase added value.
· To expand.
· To survive.