LS1 And LS2 - Economics, Economy, Good, Service + Models In Economies Flashcards
1
Q
Economy
A
Goods and services produced in an area
2
Q
Factors of productions
A
Resources used to produce goods and services
3
Q
Capital
A
Things used to make goods and services
4
Q
Enterprise
A
Willingness of people in business to take risks to make a profit
5
Q
Land
A
Natural resources (oil,forests and land)
6
Q
Labours
A
Work done by humans in production
7
Q
Role of government in economy
A
Sets rules that other economic agents, produces some goods and services
8
Q
Ceteris paribus
A
Assuming other variables remain constant
9
Q
Theoretical model vs Emprical
A
Based on theory but empirical based on observations and data
