Basic Definitions of Economics Flashcards
1
Q
What is profit?
A
Revenue - Cost of Production or ‘what the money you get from selling something - the cost of making that thing’
2
Q
What is productivity?
A
How much output you get from a certain level of input
3
Q
What is a subsidy?
A
A payment from the government to businesses to lower the cost of production
4
Q
What is Division of Labour and Specialisation?
A
When you divide a job/role into different tasks and have each employee specialise in one thing
e.g. Mum - architecture, Dad - planner
5
Q
What is voluntary unemployment?
A
People who choose not to work and so are unemployed
6
Q
What is involuntary unemployment?
A
People who want to work but they are unemployed.
