4.1.1.3 ~ Economic Resources

• What are the 4 factors of production? (CELL)

  • Capital

  • Enterprise

  • Land

  • Labour
• Land:

  • Natural resources

  • Non-renewables, materials & water etc…
• Labour:

  • Work done by the people > contributing to the production process
• Capital:

  • Equipment used in producing goods & services > factories etc - government paid
• Enterprise:

  • Willingness to take a risk to make a profit - setting up businesses
• Economic objectives:

  • Consumers > economic welfare/ utility (benefit gained from consumption)

  • Workers > maximise welfare at work

  • Firms > Profit maximisation

  • Governments > maximise welfare of citizens