Economics: Business Economics Key Words

Question	Answer
Capital intensive	Where production relies more heavily on machinery relative to labour.
Entrepreneur	An individual who organises the other factors of production and risks their own money in a business venture.
Factors of production	The resources used to produce goods and services. They include land, labour, capital and enterprise.
Fixed capital	The stock of "man-made" resources such as machines and tools used to help make goods and services.
Human capital	The value of the workforce or an individual worker.
Labour	The people used on production.
Labour intensive	Where production relies for heavily on labour relative to machinery.
Production	A process which involves converting resources into goods and services.
Productivity	The amount of output that can be produced with a given quantity of resources.
Working capital or circulating capital	Resources used up in production such as raw materials and components.
De-industrialisation	The decline in manufacturing.
Primary sector	Production involving the extraction of raw materials from the earth.
Secondary industry	Production involving conversion of raw materials into finished and semi-finished goods.
Tertiary sector	Production of services in the economy.

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	Created by bqrs01 _ about 8 years ago