Capital are referred to goods to produce other goods. E.g. Machinery
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What is Enterprise?
Taking risks and managing the whole production. This role could be known as an entrepreneur.
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What is the primary sector?
Where the extraction of raw materials take place e.g. mining.
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What is the secondary sector?
Where the raw materials are turned into manufacturing goods
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What is the tertiary sector?
Service sector
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What is opportunity cost?
The next best alternative foregone when making a choice.
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What is Market?
Where buyers and sellers meet to exchange goods or services.
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What is a market economy?
Where all resources are allocated by private individuals and groups.
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What is a planned economy?
Where all resources are allocated by the government?
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What is a mixed economy?
Where some resources are allocated by the government and some are allocated by private individuals.
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Whats the public sector?
The government sector of the economy. It is owned and run by the government.
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What the private sector?
The sector of the economy where firms are owned and run by private individuals.. It is owned and run by the private individuals and groups. The aim is to make profit maximisation.
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