Economics Flashcards
Land
Anything provided by provided by nature that helps to produce a product
What is the payment for land
Rent
Labour
Human effort required to produce a product/ service
Payment for wages
Wages
Capital
Anything made by humans that helps produce a good
Payment for capital
Interest
Name the factors of production
Land
Labour
Capital
Enterprise
What is economics
It is the study of how we make the best possible use of the worlds scarce resources.
What does ‘wrip’ stand for
Rent
Wages
Interest
Profit
Financial cost
Is the amount of money that is paid for it
Opportunity cost
Is the item that must be done without having to make a choice between 2 or more actions.
Inflation
Increase in the general level of the price of goods over a period of time
GDP
Total amount of goods and services produced in an economy in one year
GNP
Is the GNP less profits sent out of the country by foreign owned companies located in the country, plus the profits returned to the country by local firms based abroad.
Economic growth
Occurs when more goods are produced in a country one year that the previous year
