Economics - The study of how individuals, businesses and governments with limited resources make choices., Economic Resources - Factors or inputs used to produce and distribute goods, services and wealth., Rational Choice - Choice where the expected gains outweigh the expected losses. , Utility - Usefulness, Factors of Production - The economic resources used to produce goods and provide services. Categories are; land, labour, capital and enterprise., Land - Refers to anything provided by land which is used in the production of goods and services. Includes oil, soil, water. Payment is rent., Labour - Refers to any human effort which goes into the production of goods and services. Reward is a wage/salary., Capital - Anything man-made which is used in the production of goods and services. And money. Reward is interest., Enterprise - Any attempt to start or do something new. Brings together the other FOPs to create a product/service. Reward is profit., Scarcity - Occurs when the needs and wants of people are greater than the resources available to them.,

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