ECONOMIC CYCLE Flashcards
1
Q
The economic cycle is known as
A
the circular flow of money
2
Q
What is the basic economic problem?
A
everyone has unlimited needs and wants but the resources to fufill these are limited
3
Q
Participants in the economic cycle :
A
Households, Businesses, The Government and Foreign Sector
4
Q
Households posses ..
A
..all the factors of production and sell the businesses who use them to manufacture goods and services
5
Q
Capital-
A
-with interest as remuneration
6
Q
Natural resources-
A
-with rent as remuneration
7
Q
Labour -
A
-with salaries and wages as remuneration.
8
Q
Entrepreneurship-
A
-profit as remuneration
