Econ Flashcards
What are the 4 factors of production
Land
Labour
Enterprise
Capital
What is factors of production
The resources needed to produce goods
What is economic system
It is the system through which the country’s resources are allocated or distributed
What is opportunity cost
It is the cost of the next best alternative forgone when making decisions
What is scarcity habibi
It’s the lack of enough resources to satisfy unlimited human wants
What is land
Land is any natural resources used in production and the reward is RENT
What is capitalism
It is where the private sector control the economy
What are the types of labor mobility
Geographical: movement of a person from one area to another
Occupational: switching between job to job in the same area
What are the 3 types of economic systems
Socialism Capitalism and Mixed economy
What are economic goods
They are goods which require human effort for production (limited in supply and are not gifts of nature)
Why would sacricity continue to exist
Human wants are greater than the available resources
What is enterprise
It controls all other factors of production and takes risks and the reward is PROFIT
What is Capital
Capital is any man made instrument made to produce other goods and the reward is INTEREST
Factors affecting demand
Income of consumer
Price of substitutes
Price of complements
Changes in taste and fashion
Season
Advertising
Price
Law of demand
As price increases demand decreases vise versa
What is socialism
It is where the economy is controlled by the government
What is demand
Amount of goods and services a consumer is willing and able to buy at different times and prices
Causes of mobility of labor
Family ties
Cost of living
Technology development
Hours of work
Weather conditions
Minimum wage
Government policies
What is the difference between needs and wants
Needs: something essential for survival
Wants: Something to improve the quality of life
What is the fundamental basic economic problem
Scarcity
What is Micro economics
The study of a smaller unit or section of the economy
What is Macroeconomics
The study of the economy as a whole
What is Labour
Any human effort involved in production and the reward is SALARY
What is mobility of labour
The movement of a person from one job to another
