Introduction To Economics Chapter 15

Question 1

What are the factors of production

Answer 1

🔹 Land
🔹 Labour
🔹 Capital
🔹 Enterprise

Question 2

Explain land

Answer 2

All the natural resources available in a country that can be used to produce goods and services, e.g agriculture land, seas, rivers, and lakes, mines and forests.

Question 3

Explain Labour

Answer 3

All the people available in a country to help produce goods and services and to the qualifications and skills they have, e.g factory worker.

Question 4

Explain Capital

Answer 4

All man-made things that are available to help produce goods and services, e.g machinery, vehicles, buildings and equipment.

Question 5

Explain Enterprise

Answer 5

The act of brining together land, labour and capital to set up a business to produce a product or supply a service at a profit, e.g entrepreneur.

Question 6

What is GNP

Answer 6

Gross National Product. The total quantity of goods and services produced in a country in any one year.

Question 7

What is economic growth

Answer 7

The change in GNP i.e the total quantity of goods and services produced in a country from one year to the next.

Question 8

Explain Inflation

Answer 8

An increase in prices in a country from one period to the next.

Question 9

What are the factors of production and their source of income

Answer 9

1) Land - Rent
2) Labour - Wages
3) Capital - Interest
4) Enterprise - Profit

Question 10

What does CPI stand for

Answer 10

Consumer price index

Question 11

What are the types of economy

Answer 11

1) Mixed economy e.g Ireland
2) Free enterprise e.g USA
3) Centrally planned economy e.g Cuba

Question 12

What is economics

Answer 12

The study of how people and businesses with limited income make decisions about what they spend their money on.