Definitions Flashcards
Natural Resources
All things that come from the earth, water or air
Labour
Is the work that people perform when making goods and supplying services for business
Capital
Is the money the owner invested in the business from savings or money borrowed
Entrepreneurship
The process of starting a business to provide goods and services
Modern society
A society in which there is a high level of economic development, a large volume of of economic activity with a well developed infrastructure
The government
Is responsible for making the laws of a country and it protects the people
National budget
Is a plan that shows the government’s income and expenditure
Market
Any place where people who buy and people who sell,exchange goods and services in an economic transaction
Goods and services market
Any place where households and businesses meet and negotiate about the exchange of goods and services
Factor market
Where the factors of production are being traded
Labor market
Sells services or skills that us involved in doing a certain job
Financial market
Financial resources are exchanged between those who want to invest and those who need capital
Indirect tax
Are taxes which are paid on the sale of goods and services
Direct taxes
Are paid directly to the government by the person on whom the tax is imposed
Gross income
What you earn before paying tax
