The Basic Economic problem
1.Factors Of Production
• Resources are used to make goods and provide services.
• Production involves using resources to make and sell
goods/services to satisfy consumer needs and wants
• Make and sell goods = producers
Resources = in
Goods + services = out
1.1 Land
Þ Includes the seas, rivers of the world, forests, deserts, all
manner minerals from the ground, chemicals and gases
from the air and the earth’s crust
ÞAll natural resources
1.2 Labour
Þ People who work with their hands and use their brains to
help make goods and services, provide human resources
Þ The greater the number of workers and the better the
educated and skilled they are, the more the economy can
produce
1.3 Enterprise/Entrepreneurs
Þ People can contribute to the production process, not
everyone can work a successful business, organising
resources
Þ A firm is an organisation that owns a factory or a business
where goods and services are produced
1.Factors Of Production
• Resources are used to make goods and provide services.
• Production involves using resources to make and sell
goods/services to satisfy consumer needs and wants
• Make and sell goods = producers
Resources = in
Goods + services = out
1.1 Land
Þ Includes the seas, rivers of the world, forests, deserts, all
manner minerals from the ground, chemicals and gases
from the air and the earth’s crust
ÞAll natural resources
1.2 Labour
Þ People who work with their hands and use their brains to
help make goods and services, provide human resources
Þ The greater the number of workers and the better the
educated and skilled they are, the more the economy can
produce
1.3 Enterprise/Entrepreneurs
Þ People can contribute to the production process, not
everyone can work a successful business, organising
resources
Þ A firm is an organisation that owns a factory or a business
where goods and services are produced
