top of page

Economics explained


Basic economic ideas

Charactheristics of money and barter

Charactheristics of money and barter

The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
  • are clear and concise and relevant
  • is set in an engaging template to facilitate memorisation
  • cover all the important topics in the O level, AS level and A level syllabus
  • are editable, feel free to make additions or to rephrase sentences in your own words!

    Looking for live explanations of these notes? Enrol now for FREE tuition!

The central economic problem is that of scarcity. Given that there is a limited supply of factors of production, it is impossible to provide everybody with everything they want. Potential demands exceed potential supplies.

Factors of production are the inputs into the production of goods and services. The four factors of production are:


This factor is the natural resource.

Examples: Surface of the earth, lakes, rivers, forests or the area of land that makes up a farm or factory.

The reward for owning land is the income that is generated.


This factor is the human resource

The basic determinant of which is the nation’s population.

The reward for labour is the wage or salary that is paid.


This factor is any man-made aid to production.

Capital consists of all those inputs that have each had to be produced in the first place.

Capital goods help land and labour produce more units of output – they improve the output from land and labour.

Examples: factories, machines, transportation and other equipment.

The reward to capital is the rate of return that is earned. These three factors are organised into units of production by firms.


This factor carries out two functions.


organises the other three factors of production.

involves taking the risk of production

The return for enterprise is the profits that are made.

bottom of page