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15 Cards in this Set

  • Front
  • Back
Scarcity
have scarce resources to satisfy our unlimted want therefore we have to make choices
opportunity cost
next best alternative foregone
postive statment
able to prove true or false
Land
natural resources eg coal or fish
return to land is rent-cost of production
occupational mobility-limted eg fishh used for food source
eg retail shop
geographical mobility- not mobile
renewable/ non renewable-substanablitiy
labour
human resource
skilled/unskilled
return to labour is wages
occuptional mobility- depends on skill transferability
growth in labour supply may caused by immgration etc
Captial
return to capital is interest
investment is the creation of captial goods in the process of production
net investment is the change in the capital stock which production determines productive capacity
Enterprise
the risk of organising the other 3 factors together
Normal profit
return required to keep the euterprenuers in the business
Specialisation
Self-sufficiency is where people try to meet their own wants and needs without producing a surplus to trade. Specialisation is when individuals, regions or countries concentrate on making one product to create a surplus to be traded.
Division of Labour
Division of labour means the specialization of the functions and roles involved in making the separate parts of a product. It is closely tied to the standardization of production, the introduction and perfection of machinery, and the development of large-scale industry. As a result of mass-production techniques, total production is many times what it would be had each worker made the complete product. Problems created by the division of labour include job monotony, technological unemployment, and eventually chronic unemployment if the economy does not expand quickly enough to reabsorb the displaced labour.
Functions of money
Medium of exchange,unit of account,store of value and deferred payment
medium of exchange
anything that is used to determine value during the exchange of good and service.allow us to go beyond barter
double coincidence of wants
two people have to have the appropriate goods or services which each other wants.
Unit of account
by using the monetary value assigned to a specific good or service to compare it to one offered by a different provider.
Store of value
is used to maintain the value of a transaction over time.