Economic resources

• What are the factors of production? CELL

  • Land, labour, capital and enterprise
• What do households sell to firms?

  factors of production
• What do firms reward households with?

  factor incomes
• What are the factor incomes of CELL?

  • The factor income for land → rent
  • The factor income for labour → wages
  • The factor income for capital → interest
  • The factor income for entrepreneurship → profit
• What are environmental resources?

  • Environmental resources are raw materials that come from nature, e.g. gas, water, soil, wood
  • It is the land used to produce goods and services as part of the factors of production 
• What does increased economic activity do to the environment?

  Increased economic activity causes the degradation of environmental resources.This is where current generations overconsume and produce, resulting in resources becoming scarce. They are being destroyed for use for future generations
• What are non-renewable resources?

  Non-renewable resources (eg. coal or oil) are already limited in supply and will run out quickly - scarce
• What are renewable resources?

  Renewable resources (e.g. water and air) should be infinite in supply
• What is sustainability?


  meeting the needs of current generation without compromising the needs of future generations