Summary IGCSE Economics

IGCSE Economics Economics - The study of how scarce resources can be allocated to satisfy people’s unlimited wants. Scarcity - When there are not enough resources to satisfy our wants and needs. Resources - The inputs that are used in the production process to produce goods and services. These are also called Factors of Production. Resources are limited.  Capital - Human-made goods that are used in the production of other goods. Payment comes in Interest  Entrepreneurs (Enterprise) - The person who takes the risk and has the skills to combine the other factors of production to produce goods and services. Payment comes in Profit  Labour - Human work or effort and the people who offer their services to businesses in exchange for wages. Payment comes in Wages  Land - Any resource that exists as part of a natural process. Can be renewable or non-renewable. Payment comes in Rent