What are the three Ps every society has to ask itself? What to produce How to produce Where to produce
What is scarcity? Scarcity is when the wants are unlimited and the resources and limited. This leads the person or the government to make a choice.
Factor of Production: Labour Labor refers to the people who are employed to perform business activity
Factor of Production: Land Land refers to the natural resources and land used for a business activity
Factor of Production: Enterprise Enterprise refers to the ability to combine the 4 factors of production and take the risk of doing a business.
What are the factors of production? There are 4 factors of production: Capital, Enterprise, Land and Labor.
Purpose of Economic Activity The purpose of the economics activity is to satisfy the needs of the society