THE CAPITALIST REVOLUTION UNIT 1

Question 1

GDP per capita

Answer 1

total amount of goods and services produced over a given period of time

Question 2

market value

Answer 2

is how much goods and services are produced for final consumption x what each of these goods and services are priced at.

Question 3

Final Consumption

Answer 3

is that certain goods and services are sold to its ultimate consumer

Question 4

Disposable Income (DI)

Answer 4

Income is available after paying taxes and receiving transfers from the government.

Question 5

Economic model:

Answer 5

A simplification of the world that explains actions and interactions of economic agents and predicts the most likely outcome.

Question 6

Economic rent

Answer 6

Net benefit from option taken-foregone benefit from next best option

Question 7

Isocost line:

Answer 7

A line representing all combinations that cost the same total amount

Question 8

Total Cost

Answer 8

The sum of costs for inputs (wL) + price of resource x amount of resources (PcR)

Question 9

The average product of labour

Answer 9

is the total product/total of workers