Booklets Flashcards
What are the 4 factors of production?
- an entrepreneur
- labourers
- capital and capital equipment
4.materials
What is income ?
money that an individual or business receives in exchange for providing a good or service.
What is expenditure?
money that is spent on something.
what is profit?
extra money obtained by selling something for more than it cost to buy or make.
What is loss?
money lost by selling something for less than it cost to buy or make.
What is the formula for profit?
Total income - total expenses.
What are direct costs?
money paid upfront for any expenses related to the production process.
What are indirect costs?
a cost to a business that is not directly related to the actual production of a specific good or service.
What is unit cost?
the amount it costs to produce one product.
What is economic growth?
the countries economy has become bigger.
What is economic development?
country has become better.
