1.1 - Main Economic Groups and Factors of Production

• The role of a consumer is those that consume goods and services, this includes the entire population of an economy. They provide a workforce in return for wages.
• The role of a producer is to produce goods and services by bringing together factors of production, this includes organisations like manufacturers/farmers. Their main goal is to maximise profits.
• The role of the government collecting taxes and using the revenue to provide public goods and services. They are the central authority that formulate and implement economic policies for the good of society.
• Land Refers to all the natural resources used in production. This includes resources like minerals, forests, or fields used in farming. (reward: rent)
• Labour refers to the efforts of workers in the production process. It’s the workforce required for producing goods and services. (reward: wage)
• Capital refers to man-made goods like machinery, buildings, or technology that aid production. (reward: interest)
• Enterprise takes all the resources and organises them to create a product or service. It includes entrepreneurship, which involves taking risks and making decisions on behalf of the firm. (reward: profit)