click below
click below
Normal Size Small Size show me how
Chp15
Economics
Term | Definition |
---|---|
Economics | the study of how people and businesses with limited income make decisions about what they spend their money on. |
Factors of Production | the elements necessary to produce goods and services. Land, Labour, Capital and Enterprise |
Economic System | refers to the way a country uses its factors of production to produce goods and services. |
Economic growth | 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. |
Land | all things supplied by nature for producing goods, i.e. land, sea, rivers, forests. Rent is paid for its use |
Labour | people employed to produce the goods or services. Wages are paid. |
Capital | all man-made things to help produce the goods and services, e.g. machinery, buildings. Interest is paid |
Enterprise | the act of bringing together land, labour and capital to set up a business. Profit is the payment received |