Friday, 3 April 2015

Economic Resources

Economists classify economic resources into four factors of production:

Land – any naturally occurring substance extracted from the air, sea or earth.
Labour – employees.
Capital – any manufactured item used to produce another good or service.
Enterprise – has an idea, makes an investment, organises/manages the other factors of production.

Free good – any good that is not scarce.

Economic good – any good that is scarce and therefore can command a price when sold.

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