Elements Of Economic Cycle Flashcards
1
Q
What are the products
A
Satisfies human needs
Can either be goods or services
2
Q
What is households
A
Members of households are called consumers
3
Q
What is the government
A
Also known as the public sector or the state.
Buys factors of production from households
4
Q
What is the foreign sector
A
- Refers to all other countries in the rest of the world
- Involves imports and exports
5
Q
What is imports
A
- provide products which are not locally available
- helps businesses to gain an advantage
- leads to an increase in competition
6
Q
What are the factors of production
A
- labour
- capital
- natural resources
- entrepreneurship
7
Q
What are exports
A
- Foreign currency flows into the country
- Excess goods can be exported
