economics Flashcards
How is total revenue calculated
sales x selling price
How is total average cost calculated
Total FC + Total VC divided by units produced
what is fixed cost and a few examples
is an expense that does not change when sales or production increases or decreases. example insurance or wages
How are average costs affected as output increases
average cost then declines
Definition of resources
a service or other assets used to produce goods and services that meet human needs and wants.
returns of factors of production
land-rent. capital-interest. entrepreneurship-profit. labour-wages
Occupational mobility
the ease with which a worker can leave one job for another in a different field
geographical mobility
The ability of labour to move around an area, country in order to work.
opportunity cost
the value of the next-highest-valued alternative.
intrest rate
the cost of borrowing money or the return for investing money.
Why would you save
To earn interest on the money you have.
Identify 2 types of savings accounts offered by financial organisations.
Cash ISA ( Tax-free)
Deposits account (A guaranteed return)
2 ways of borrowing
payday loands
credit card
disposable income
Total income minus tax
if interest declines
Low interest rates mean more spending money in consumers’ pockets. going to borrow more
