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 (a)  

(a)   is all the physical and mental effort put in by humans in the production process.

(a)   refers to all the machines and resources that are used and needed to produce goods and offer services

(a)   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