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business

chap 13

TermDefinition
economics the study of how people and busnisses with limited liability make dicisions
factors of production elements necessary to produce goods and services
land provided by nature,rent
labour provided by people,wages
capital provided by man-made objects,intrest
enterprise bringing the four factors together,profit
economic system the way a country uses its factors of production to produce goods and services
centrally planned economy publicly owned and the government make all decisions..eg,china
free enterprise economy privately owned and the government have no role..eg.U.S.A
mixed economy privately owned and controlled by the government..eg,ireland
economic growth refers to the change in the quantity of goods and services produced in a country from one year to the next
inflation an increase in prices in a country from one period to the next..CPI
CPI consumer price index
recession a general slowdown in the economic activity over a period of time
Created by: zaweckute
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