Economies can be big or small and there are a number of different types. A country’s economy is called a national economy. The world economy is the global economy.
Economics studies how goods and services are produced, sold and consumed in an economy. i
Economics is the study of how individuals, organisations and governments make choices about how to allocate limited resources.
ECONOMIC RESOURCES
The production of goods and services is essential for the growth and development of an economy.
Certain elements need to be in place so that goods and services can be produced. These are called economic resources (they are also known as factors of production).
Economic resources are generally divided into: 1. Land
2. Labour 3. Capital 4. Enterprise. Each economic resource can offer a source of economic return (income). i
Economic resources are the factors used to produce goods and provide services.
Land
Land is all the natural resources available in a country for use in the production of goods and services, such as agricultural land, seas, forests and mineral wealth. For example, grains are used to produce breakfast cereals.
