Economic problem Flashcards
1
Q
What is the economic problem?
A
Unlimited wants and limited resources
2
Q
What does finite mean?
A
Having an end or limit
3
Q
What does infinite mean?
A
Having no end or limit
4
Q
What are the four factors of production?
A
Land, Labour, Capital, and Entrepreneur
5
Q
What does land mean?
A
Natural resources. E.G trees, minerals.
6
Q
What does labour mean?
A
Human resources or a nations population
7
Q
What does entrepreneur mean?
A
This is organizing the land, labour, capital, and taking the risk.
8
Q
What does capital mean?
A
Any man-made item to help production e.g. machines and offices.
9
Q
What does PPC stand for?
A
Production possibility curve
10
Q
What is a PPC graph?
A
It shows the maximum combinations of two goods that an economy can produce in a given period of time.
