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Flashcards in How does the economy works? Deck (11):
1

How else is the country generates income?

1) Imports
2) Tourism
3) Taxation

2

Factors of Production

1) Capital
2) Enterprise
3) Land
4) Labour

3

2 Problems with "land" that might stop you from improving everyone's standard of living

1) Temperature
2) Quality of land - the resources you find on the land (food, animals) and underneath (oil, coal, gas)
3) Not every country have same amount of resources

4

2 UK issues with "Labour" that stop them being as productive as they could be

1) Ageing population
2) Shortage of skills

5

4 ways to make "labour" more productive and create economic growth

1) Education
2) Training
3) Health
4) Immigration

6

What is "Capital"

Describe money that is used to set up a business and keep it going

7

Capital can come from

1) Savings that are put into shares
2) Money that banks or very rich people lend to companies as loans

8

Factors that effect how much capital is available in an economy

1) Interest rate - currently low to encourage economic activity
2) Exchange rate - (currency)

9

What is "Enterprise"?

Person who takes risk, organises the land, labour and capiral

10

Why do prices rise?

1) Inflation
2) Availability
3) Interest rate -eg Bread/ house price

11

Define "inflation"

A sustained increase in the cost of living or the average/ general price level leading to a fail in the purchasing power of money