1.1

• Consumer


  A person or organisation that directly uses a good or service
• Good


  A tangible product, i.e. a product that can be seen or touched
• Government


  A political authority that decides how a country is run and manages its operation
• Producer


  A person, company or country that makes, grows or supplies goods and/or services
• Service


  An intangible product, i.e. a product that cannot be seen or touched
• Production


  The total output of goods and services produced by a firm or industry in a time period
• The role of consumers


  The end user of a good

  Make choices about their spending

  They create demand in the economy
• The role of producers


  To supply goods and services

  Make choices over what to produce

  Have influence over the quantity, price and quality of a good they produce
• The role of government


  To make an enforce rules in a country

  Spending money in the economy

  To collect revenue and influence the economy using taxation
• Factors of production


  The resources in an economy that can be used to make goods and services
• Examples of land include


  Farmland, mineral deposits
• Labour


  The workforce available for production in an economy
• Examples of labour


  Waiters, bankers, bus drivers teachers
• Capital


  The factor of production that relates to the man made aids to production
• Examples of capital


  Machinery, bulidings
• Enterprise


  The factor of production that takes a risk in organising the other factors of production. The individual who takes this risk is known as the entrepreneur
• Land


  Natural resources available for production in an economy