Chapter 15 - Intorduction to Economics☀️

Question 1

What is land?

Answer 1

All the natural resources available in a country that can be used to produce goods and services e.g. Mines and Forests

Question 2

What is labour?

Answer 2

All the people available in a country to produce goods and services and to the qualification and skills they have e.g. Dentist

Question 3

What is capital?

Answer 3

All man-made things that are available to help produce goods and services e.g. Buildings

Question 4

What is enterprise?

Answer 4

The act of bringing together land, labour and capital to set up a business to produce a product or supply a service at a profit e.g. Entrepreneur

Question 5

What are the factors of production and their source of income?

Answer 5

1. Land ~ Rent
2. Labour ~ Wages
3. Capital ~ Interest
4. Enterprise ~ Profit

Question 6

What are the types of economic system?

Answer 6

1. Mixed Economy e.g. Ireland
2. Free Enterprise Economy e.g. USA
3. Centrally Planned Economy e.g. Cuba

Question 7

What is Economic Growth?

Answer 7

The change in gross national product (GNP) i.e. The total quantity of goods and services produced in a country from one year to the next.

Question 8

What is inflation?

Answer 8

An increase in prices in a country from one period to the next.