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What is an economy?
A system that produces, buys, and sells goods and services
What is economics?
The study of how individuals, organisations and governments make choices about limited resources.
Name the four factors of production.
Land, Labour, Capital, Enterprise.
What is the economic return for land?
Rent
What is the economic return for labour?
Wages
What is the economic return for capital?
Interest
What is the economic return for enterprise?
Profit
Give an example of land as a factor of production.
Forests / agricultural land / seas / minerals (any one).
Give an example of labour.
Builders / factory workers / food scientists (any one).
What does capital include?
Machinery, vehicles, equipment, buildings, or money to run/start a business.
What is the basic economic problem? Hint: x is limited but Y is unlimited
Resources are limited but needs and wants are unlimited
What is scarcity?
The gap between unlimited wants and limited resources.
What is opportunity cost?
The choice you give up when you choose another option.
Name one type of economic system
Free / Controlled / Mixed economy.
What is a free economy also called?
A capitalist system or free enterprise system
Who controls a controlled economy?
Government
