RSM100Y1 Chapter 1: Chapter 1 Summary
3 Apr 2011
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Economic system - the way in which a nation allocates its resources among its citizens. Factors of production the resources used to produce goods and services: labour, capital, entrepreneurs, and natural resources. Labour the mental and physical training and talents of people. Capital the funds needed to operate an enterprise. Investment by owners, entrepreneurs, partners who start the business, or investors who buy stock. Entrepreneurs an individual who organizes and manages labour, capital, and natural resources to produce goods and services to earn a profit. Natural resources i tems used in the production of goods and services in their natural state, including land, water, mineral deposits, and trees. I nformation resources information such as market forecasts, economic data, and specialized knowledge of employees that is useful to a business and that helps it achieve its goals. Command economy an economic system in which government controls all or most factors of production and makes all or most production decisions.
