Introduction To Economics Chapter 15 Flashcards Preview

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Flashcards in Introduction To Economics Chapter 15 Deck (12)
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1
Q

What are the factors of production

A

🔹 Land
🔹 Labour
🔹 Capital
🔹 Enterprise

2
Q

Explain land

A

All the natural resources available in a country that can be used to produce goods and services, e.g agriculture land, seas, rivers, and lakes, mines and forests.

3
Q

Explain Labour

A

All the people available in a country to help produce goods and services and to the qualifications and skills they have, e.g factory worker.

4
Q

Explain Capital

A

All man-made things that are available to help produce goods and services, e.g machinery, vehicles, buildings and equipment.

5
Q

Explain Enterprise

A

The act of brining together land, labour and capital to set up a business to produce a product or supply a service at a profit, e.g entrepreneur.

6
Q

What is GNP

A

Gross National Product. The total quantity of goods and services produced in a country in any one year.

7
Q

What is economic growth

A

The change in GNP i.e the total quantity of goods and services produced in a country from one year to the next.

8
Q

Explain Inflation

A

An increase in prices in a country from one period to the next.

9
Q

What are the factors of production and their source of income

A

1) Land - Rent
2) Labour - Wages
3) Capital - Interest
4) Enterprise - Profit

10
Q

What does CPI stand for

A

Consumer price index

11
Q

What are the types of economy

A

1) Mixed economy e.g Ireland
2) Free enterprise e.g USA
3) Centrally planned economy e.g Cuba

12
Q

What is economics

A

The study of how people and businesses with limited income make decisions about what they spend their money on.