2. Factors of Production PRODUCT C A P I T A L E N T E R P R I S E L A N D L A B O U R Capital , available for invest- ment in new machines,etc. Land , used for agriculture, housing development and for providing natural resources. Enterprise , referring to the people who are willing to take the risk of setting up in business. Labour , the number of persons available and willing to work.
24. Types of Markets Consumer markets Industrial markets capital goods single-use consumer goods services consumer durables industrial services
25.
26. All information taken from : Letts Study Guide GCSE, Floyd,David;Business Studies;Letts Educational; London 1997 ISBN: 1 85758 576 3 Don‘t do that ! Always have a look at the bright side of life !
Editor's Notes
Economics tries to explain how we can best use the various resources which are at our disposal. Many decisions have to be made about business resources; managers must decide, e.g. whether to employ more or fewer people, or whether to invest in a new machine. Decisions are usually made on the basis of some information about the business, such as that gathered by an accountant. There are many influences on business. Some of these may be local or national, whereas others may come from international dealings. Business organisations cannot afford to isolate themselves from the rest of the business world: they will need to communicate with other organisations, as well as needing their own efficient communication systems. Businesses vary in many ways: In their organisation; In the goods or services they produce; In their size and complexity; In the nature of their markets, which could be local (hairdresser), national (ARD) or international (VW). The economies in which these various firms operate will also vary, from the planned economies of China and the former Eastern Bloc countries to the market-oriented economies of the West.
