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Description
Flashcards by jennifer.hemmings, updated more than 1 year ago
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Created by jennifer.hemmings
almost 9 years ago
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| Question | Answer |
| Economics | The study of how people with limited income choose to spend their money. |
| Resources | Items used by society to make money |
| Factors of Production | Are the elements needed to produce goods and services. C.E.l.l (Capital, Enterprise,Land,Labour) |
| Land | Anything provided by nature. Rivers,soil, forests etc. |
| Labour | The people who work in the factories, offices and on the land |
| Capital | Finance invested in a business - used to buy premises and equipment |
| The Factor's Yeilding | Land - Rent Labour - Wages Capital - Interest Enterprise - profit |
| Economic System | The way the country uses their factors of reproduction |
| Free Enterprise Economy | Decisions on how to manage and use resources and what goods to produce are made by individual businesses eg. USA |
| Centrally Planned Economy | All decisions on what goods and services are produced, and resources usage are made by the government eg. China |
| Mixed Economy | It's a mixture of Free Enterprise economy and centrally planned economy. Both government and individual businesses make decisions on production of goods and services |
| GNP - Gross National Product GDP - Gross Domestic Product | Total amount of goods and services produced in a country during the year |
| Economic Growth | Is the increase of the amount of goods and services produced in a country from year to year |
| The advantages of economic growth | 1. Increase in standard living 2. Increase in employment |
| Disadvantages of economic growth | Traffic congestion because people are able to afford cars Prices of properties increase |
| Inflation | An increase in prices in a country from one year to the next |
| CPI - Consumer Price Index | The list of goods and services that people buy on a regular basis and prices are monitored. The changes of prices are used to calculate the rate of inflation |
| Inflation disadvantages | Irish goods and services will become very expensive and people will choose to import cheaper goods Workers will want higher wages |
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