Worksheet - Chapter 1 "A3 thick" Flashcards
From where do all economics problem arise?
Scarcity
Who experiences scarcity
Everybody
What is the economics?
The study of choices under scarcity.
How do economic transaction work?
Through the exchange of goods and services at certain quantities for certain prices.
What is the importance of how a good is produced?
In USA, labour is expensive and machinery is encouraged. In India, labour is inexpensive and machine is discouraged as it can lead to unemployment.
What is recession?
When economy production slackens.
What is the importance of where a good is produced?
A good produced in India is cheaper than a good produced in USA, due to labour costs.
What is the effect of globalisation in regards to where a good is produced.
Allows more profit as countries can outsource their work.
Why is who consumes the good important?
Doctors earn more, so they can consume more elite products.
Define the four factors of production?
Labour, Capital, Land and Entrepreneurship.
Labour
The work done for income.
Capital
The resources needed to create the product.
Land
All natural resources needed to create the product.
Entrepreneurship.
The idea
