LS1 - The Economic Problem Flashcards
1
Q
Corporation Tax
A
The tax applied to profits made in a business
2
Q
What are the FOP
A
Capital
Enterprise
Land
Labour
3
Q
Capital
A
Manmade tools used to make goods/services.
4
Q
Enterprise
A
The person that takes risk seeking out business opportunity and manages the rest of the FOP.
5
Q
Land
A
Natural resources
6
Q
Labour
A
The work done by people
7
Q
What Does Success Result In?
A
Profit
8
Q
What Does Failure Result In
A
Loss of money and potentially bankruptcy.
9
Q
The Economic Problem
A
How to use the available scarce resources to satisfy people’s infinite needs and wants
10
Q
Scarce
A
Not sufficiency in quantity or amount
11
Q
Economic Agents
A
Groups that participate in the economy:
Producers
Consumers
Government
12
Q
What 3 Questions Does The Economic Problem Lead To?
A
What To Produce?
How To Produce It?
Who To Produce It For?
