increase output

decrease output

keep output the same because profits are maximized when marginal revenue exceeds marginal cost.

raise the price

The term ’factors of production’ is another term for resources

The factor of production termed labour means human resource

The factor or production termed land means natural resources

The factor of production termed capital means the money which the owners of firms need in order to set their firms up

How are resources used?

Where are resources used?

For what are resources used?

For whom are resources used?

Households produce many goods and services for themselves

People set up some producers who do not aim to make profits

All the goods and services consumed in any country are produced by its own producers

Governments arrange the production of some goods and services

Despite the problem of scarcity, people do not always want producers to use the most efficient production methods

The problem of scarcity would disappear if the world’s population grew to ensure more labour was available

A producer who uses no more resources than it needs must display productive efficiency

The world’s economies were as integrated 50 years ago as they are today