Intro to Economics 2

The ultimate aim of any good economy is to...

• satisfy its population’s wants and needs

• make people rich

• collect as much tax as possible

All the resources supplied by nature and are called___________

____________ is all the physical and mental effort put in by humans in the production process.

_________ refers to all the machines and resources that are used and needed to produce goods and offer services

__________ is the skill needed by the person who combines the other three factors of production and who takes a risk of opening a business and developing a product

True or false? Entrepreneurs receive wages as their remuneration

• True

• False

Indirect production occurs where the producer and the consumer are the same.

• True

• False

The activities involved in collecting, extracting or cultivating natural resources.

• Secondary sector

• Tertiary sector

• Resource sector

• Natural resource sector

• None of the above

True or false? Within businesses and organisations, most employees specialise.

• True

• False

True or false? Division of labour is a form of specialisation.

• True

• False