Chapter 1

1.

1 point

Payment to land.

2.

1 point

Physical, mental and intellectual skills which individuals use in course of production.

3.

1 point

Must be done as some needs can be satisfied while other cannot.

4.

1 point

First stage of production, where raw materials extracted from land and sea.

5.

1 point

Payment to capital.

6.

1 point

Things that business owns and user to create good and to provide services.

7.

1 point

One who sees opportunity, undertakes risk to exploit the opportunity and organizes the necessary resources.

8.

1 point

Payment to labour.

9.

1 point

Long-lasting capital like equipment.

10.

1 point

Something you can live without.

11.

1 point

Manufacturing of goods and provision of services.

12.

1 point

A physical item that can purchased.

13.

1 point

Second stage of production, where raw materials are processed and turned into goods.

14.

1 point

Something you can’t live without.

15.

1 point

The next best alternative forgone.

16.

1 point

All the natural resources.

17.

1 point

Ability to organize the factor of production.

18.

1 point

Resources is limited but needs is unlimited.

19.

1 point

A non-physical item that can purchased.

20.

1 point

Items that can be changed into cash like stock.

21.

1 point

Payment to enterprise.

22.

1 point

Third stage of production, involves the productions of services rather than goods.