Economics: Business Economics Key Words

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Economics Key Words
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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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