Economic Foundations 0.0 / 5 ? EconomicsKey TermsHow Markets WorkGCSEAQA Created by: tia.sCreated on: 08-11-17 18:46 Factors of Production Land, Labour, Capital and Enterprise. The resources required for production to take place. 1 of 11 Needs Goods and services whose consumption is seen as essential in order to maintain a minimal standard of living in society. 2 of 11 Wants Goods and services whose consumption is seen as contributing to a higher standard of living rather than the minimum. 3 of 11 The Basic Economic Question The problem arising because resources are scarce but human wants are infinite. 4 of 11 Land Natural resources made available for production. 5 of 11 Labour Human effort made available for production. 6 of 11 Capital Man made physical goods used to produce other goods and services. 7 of 11 Enterprise The skill of organizing the factors of production and taking risks. 8 of 11 Capital Goods Those goods which make the production of goods easier. 9 of 11 Consumer Goods Those goods which directly satisfy wants. 10 of 11 Opportunity Cost The benefits obtained from the next best alternative forgone when a choice is made. 11 of 11
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