Flashcards in Introduction To Economics Chapter 15 Deck (12):
What are the factors of production
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.
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.
All man-made things that are available to help produce goods and services, e.g machinery, vehicles, buildings and equipment.
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.
What is GNP
Gross National Product. The total quantity of goods and services produced in a country in any one year.
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.
An increase in prices in a country from one period to the next.
What are the factors of production and their source of income
1) Land - Rent
2) Labour - Wages
3) Capital - Interest
4) Enterprise - Profit
What does CPI stand for
Consumer price index
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