Economics Y10 Chapter 1 Flashcards
name the factors of production
enterprise, capital, labour and land
what is enterprise
the facotor of production that takes a risk in organising the other three factors of production
what is an individual in enterprise called
entrepreneur
what is capital
the factor that relates to the humna-made aids to production
what is labour
the factor that is concerned with the workforce of an economy in terms of both the physical and mental effort involved in production
what is land
the factor that is concerned with the natural resources of an economy
is money a factor of production
no, it helps you acquire the factors
what are factors of production
resources used in the production process
what two aspects determine the efficiency of the factors
quantity and quality
name some things which the efficiency of labour depends on
population size, migration, working age, education, health, training
what are the 3 main economic groups
consumers, producers, government
what do the economic groups do
make decisions about goods and services
what is a producer
a person, company or country that supplies goods and services and makes choices about what to produce and how
what is a good
a tangible product
what is a service
an intangible product
what is the production
the total amount of goods and services produced by a firm or industry in a given time period
what is interdependence
one economic group responding to the actions of another group
what are the three parts of tax revenue
VAT, corporate tax and income tax
what does VAT stand for
value-added tax
what is the economic problem
the problem of choice that arises due to unlimited human want and the scarcity of resources having alternative uses
what are wants
things a consumer has to improve their quality of life
what are needs
things a consumer must have for survival
is a work laptop a want or a need
need
can consumers want a good or service that they cannot afford to buy
yes
what are the three central problems of an economy
1) what to produce
2) how to produce it
3) whom to produce it for
how can you solve the question of what to produce
produce things that consumers want to buy according to market analysis
how can you solve the problem of how to produce a good or service
produce goods and services with as little waste as possible
how can you solve the problem of whom to produce goods and services for
produce goods and services for those who are willing and able to buy it according to distribution of income
what is the oppurtunity cost
the next best alternative given up when making a choice
what is an economic choice
an option for the use of selected scarce resources
what does economic suistainability consider
the cost in production and the price so that a firm/economy can grow over time
what does social sustainability consider
how a choice affects a community’s quality of life and wellbeing
what does environmental sustainability consider
the impact on the environment
what does renewable mean
can be replaced as long as not overused
what does non-renewable mean
cannot be replaced once used
