Economics

Question 1

Factors of production

Answer 1

Land
Labour
Capital
Enterprise

Question 2

Rewards of factors of production

Answer 2

Rent
Wages
Interest
Profit

Question 3

Land

Answer 3

Anything provided by nature that helps to produce good and Services example sea grass gas
Reward rent

Question 4

Economics

Answer 4

Is the study of how we make best possible use of our scarce resources in order to satisfy the requirements of as many people as possible in order to satisfy as many people as possible

Question 5

Labour

Answer 5

Any human effort that helps to produce goods and services
Example factory worker, accountant, doctor
Reward Wages

Question 6

Capital

Answer 6

Anything made by humans that is then used to help produce other
goods or services
Example machine, trucks computer loan
Reward interest

Question 7

Enterprise

Answer 7

Is the special form of human activity that organises the other factors of production and bears the risk involved in production
Example entrepreneurs
Reward profit

Question 8

Free enterprise system

Answer 8

Run fully by private individuals the government does not have a say
Example America

Question 9

Centrally planned system

Answer 9

All buisness are owned by government and controls all economic activity
Eg North Korea

Question 10

Mixed economy

Answer 10

private sector makes most desicions but government has say

Question 11

Financial cost

Answer 11

Amount of money you pay for items

Question 12

Opportunity cost

Answer 12

The thingg you don’t buy

Question 13

Inflation

Answer 13

Is the increase in the General price of goods and services over a period of time

Question 14

Formula for measuring inflation

Answer 14

The increase in price in year 2
_____________________________________ x 100
The level of price in year 1

Question 15

Cause of inflation

Answer 15

An increase in the cost of producing goods
The demand for goods is greater than the supply
The cost of importing goods increase
Increase in indirect tax
Increase in general pay

Question 16

Effects of inflation

Answer 16

Discourages saving
Increases cost of living
Causes demand for wage increase causes prices of exports to go up
May cause Irish people to buy cheaper imports then Irish goods

Question 17

Gdp

Answer 17

Gross domestic product

Question 18

Gross domestic product

Answer 18

The total amount of goods and services produced by an economy in alone period

Question 19

Gnp

Answer 19

Gross national product

Question 20

Gross national product

Answer 20

Is the gross domestic product LESS profits sent out of the country by foreign owned companies located in the country PLUS profits returned to a country by local companies abroad

Question 21

Economic growth

Answer 21

More goods produced in a country sin a year than in the previous year

Question 22

Negative economic growth

Answer 22

When the the amount of goods and services in a year is less than pouched in the previous year

Question 23

Deflation

Answer 23

The general level of prices going down in a year

Question 24

Reasons for government involvement in an economy

Answer 24

To provide an income
To provide merit goods
To make regulations concerning the running of the economy
To provide finance for industries
To provide sociably desirable goods or services

Question 25

National budget

Answer 25

Is the government estimates of its income over the coming year

Question 26

Government Current income

Answer 26

Vat
Income tax (Paye)
Custom duties 
Dirt
National lottery 
Corporations tax

Question 27

Government current expenditure

Answer 27

Social welfare payments
Salaries of government employeess
Interest on national debt
Running cost of government services

Question 28

Capital expenditure

Answer 28

Building new schools / hospital/ roads

Question 29

Capital expenditure

Answer 29

Eu grants
Selling of semi state companies
Loans