Factors of production
labour, capital (investment), land, entrepreneurship
What are the four factors of production?
There is only a single buyer and many suppliers (companies).
What is MONOPSONY?
The place where buyers and sellers meet to trade products.
What is a MARKET?
A rise in the general price level, measured through the CPI (consumer price index).
What is INFLATION?
Money invested in machinery, equipment, buildings, vehicles and major resources.
What is CAPITAL?
wages
What financial reward do employées get?
Only one or very few companies sell a certain product or service.
What is MONOPOLY?
The quantitiy of supply and demand is equal.
What is (PRICE) EQUILIBRIUM?
The total value of a country's output over the course of a year in all economic sectors.
What is GDP?
Somebody who owns a business and is prepared to take risks.
What financial reward do owners of land get?
There are few companies that supply a certain product and many buyers.
What is OLIGOPOLY?
The amount customers pay depending on the supply and demand (in a free-market economy).
What is MARKET PRICE?
The gross national product divided by the population.
What is GDP per capita?
Key features: private businesses, market prices, profit motive encourages entrepreneuers
What is FREE MARKET ECONOMY?
profits
What financial reward do entrepreneurs get?
There are many companies and many buyers.
What is perfect competition?
Prices go up and then wages follow which trigger another rise in prices and so on.
What is PRICE-WAGE-SPIRAL?
Basket with 800 items whose prices are collected monthly, in more than 4000 shops in 20 cities.
What is CPI (consumer price index)?
The state controls economic resources, production and prices.
What is PLANNED ECONOMY?
interests
What financial reward do owners of capital get?
A grouping of producers that work together to protect their interests.
What is CARTEL?
online markets, farmers markets, internation markets, ...
What is TYPES of MARKETS?
Economic growth shown as ups and downs (upturn, boom, downturn, depression).
What is BUSINESS (ECONOMIC) CYCLE?
They consist of a private sector providing goods and services through the operation of the price mechanism and a public sector which includes health services, education and local authority organisations.
What is MIXED ECONOMY?