Buis chp 27

• Economics : Is the study of how people and buisness with a limited income make decisions about what to spend their money on in order to satisfy their needs and wants
• We refer to the item we decide not to buy as the opportunity cost of the item we actually did buy
• Factors of production ate the economic resources necessary to produce goods and services eg .

  1. Land yields rent
  2. Labour recieves wages
  3. Enterprise makes profit
  4. Capital earns interest
• Factors of production :

  labour , land , capital, enterprise
• Land all the natural resources eg.. rivers and lakes
• Labour eg. Teachers
• Capital all the man things eg. Machinery
• Enterprise the act of bringing together land eg. Known as a enterprenuer
• Labour - the people in a country to help produce oods and services eg. Teachers plumbers
• Capital - all yhe man-made things eg. Machinery , vehicles
• Enterprise- act of bringing together land eg. Enterprise