Introduction To Economics Chapter 15 Flashcards Preview

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

What are the factors of production

🔹 Land
🔹 Labour
🔹 Capital
🔹 Enterprise

2

Explain land

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

Explain Labour

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

Explain Capital

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

5

Explain Enterprise

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

What is GNP

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

7

What is economic growth

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

8

Explain Inflation

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

9

What are the factors of production and their source of income

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

10

What does CPI stand for

Consumer price index

11

What are the types of economy

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

12

What is economics

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