Notesale: Turn your study into money

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What is Economics?
"The way in which trade, industry, or money is organised, or the study of this
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This is known as scarcity
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The problem of scarcity is faced by consumers, producers and the government
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(Goods that
we will USE)
e
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food, cars and paper
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(Whether that be
producing more capital goods or consumer goods)
e
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Machinery and Tools
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This is discussed
further in the topic of free market/command/mixed economies
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These are divided
into four components: (Tip for remembering these: think CELL)
a) Land - This includes not only the land itself, but the resources under, above and on the
earth and sea
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g
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b) Labour - This refers to the workforce of the economy - all the people who are involved in
the production of goods and services
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g
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c) Capital - The manufactured stock of tools, machines, factories and other resources used
in the production of goods and services
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They usually
have two key roles:
i) Organising the use of land, labour and capital in the production of goods and services
ii) Taking risks - Using their own money, along with the financial capital of others,
entrepreneurs buy factors of production in order to produce other goods and services and
make a profit
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There is also another method of categorising resources
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e
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forests
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e
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coal, oil and gas
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- Needs are a limited number of things required to survive
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g
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- Wants are infinite
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An example of this could be wanting to live in a bigger house, or have more food and
more clothes

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