The economists' classification of economic resources into land, labour, capital and enterprise, which are the factors of production
Economists sort every resource used to make goods and services into four groups: land, labour, capital, and enterprise. Together, these four groups are called the factors of production.
Real World
Building a Tesla Model Y requires land (lithium mined in Chile), labour (assembly workers in Berlin), capital (robotic machinery), and enterprise (Elon Musk's organisation of all three into a profitable product).
Exam Focus
Learn the reward for each factor — rent, wages, interest, profit — examiners often ask you to match factor to reward, and mixing them up loses easy marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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