Section 1 Revision

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The factors of production are the resources needed to produce goods and services, what are they?
Land, labour, capital and enterprise.
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What is opportunity cost?
The benefit that could have been gained from an alternative use of the same resource.
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What are capital goods? Give 2 examples in your answer.
They are physical goods such as machinery and delivery vehicles, used by other businesses to help produce other goods and services.
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What is the difference between the primary sector and tertiary sector?
The primary sector includes firms whose business activity involves the extraction of natural resources. The tertiary sector however, are the firms that supply a service to consumers and other businesses.
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What is the chain of production?
The production and supply of goods to the final consumer involves activities from primary, secondary and tertiary sector businesses.
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The importance of business classifications has changed for many countries because of :
- Industrialisation (for example in China and India) - De-industrialisation (for example in the UK and the USA)
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Other cards in this set

Card 2

Front

What is opportunity cost?

Back

The benefit that could have been gained from an alternative use of the same resource.

Card 3

Front

What are capital goods? Give 2 examples in your answer.

Back

Preview of the front of card 3

Card 4

Front

What is the difference between the primary sector and tertiary sector?

Back

Preview of the front of card 4

Card 5

Front

What is the chain of production?

Back

Preview of the front of card 5
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