Tuesday Test Flashcards
1
Q
Define inflation
A
Inflation is the increase in the general level of the prices of goods and services over a period of time
2
Q
Name 2 types of economies
A
Mixed economy
Controlled economy
3
Q
List the 4 factors of production
A
Land labour enterprise capital
4
Q
Explain 1 cause and 1 effect of inflation
A
One cause of inflation is demand being greater than supply.
This leads to higher prices of goods and services but wages remaining the same, which leads to a reduction of the standard of living.
5
Q
What do the the following stand for GDP, GNP, FDI, CPI
A
GDP- Gross Domestic Product
GNP- Gross National Product
FDI- Foreign Direct Investment
CPI- Consumer Price Index
