factors of production
Capital
labour
enterprise
land
What happens to demand when price rises
Quantity demanded falls
What is saving?
Keeping income for future use
what is a business objective?
A target or aim of a business
What is GDP stand for
what is a capital intensive production
Capital-intensive production relies heavily on machinery, equipment, and automation rather than human labor to manufacture goods.
Sate one non price factor that can increase demand
Higher incomes
Expectations
fashion and trends
advertising
population increase
Name one advantage of borrowing
Allows people/firms to buy before they have enough money
What is a monopoly
A market dominated by one seller
What is inflation
A sustained increase in the general price level
How does mobility of factors of productions affect price elasticity of supply
If resources can switch uses easily, supply adapts quickly (elastic).Highly specialized resources struggle to adapt to different uses, making supply unresponsive (inelastic)
Define price elasticity of demand
Measure of responsiveness of demand to a change in price
What is interest?
The cost of borrowing money
Define economies of scale
Falling avarage costs as output increases
What is unemployment
People willing and able to work but unable to find jobs
Explain how the quality of a factor of production can affect productivity
Higher quality factors, such as skilled labour or modern capital, increase output per worker
Explain why demand for luxury goods is usually elastic
Consumers can easily avoid or delay buying them when prices rise
Why might people save money in a bank?
To earn interest and keep money safe
Give one example of a variable cost
Raw material or overtime wages
Name one function of money
Medium of exchange/ store of value/ unit of account
Explain why the mobility of labour may differ between occupations and regions
Workers may lack skills for certain jobs or be unwilling to move because of family, housing, or language barriers
Explain why a product with many substitutes is likely to have elastic demand
Consumers can easily switch to alternative products when the price rises, causing demand to fall significantly
Explain one risk of excessive borrowing
Debt may become difficult to repay
why might a firm choose profit satisficing instead of profit maximization
To reduce stress/risk and keep workers and shareholders satisfied
Explain why a product with many substitutes is likely to have elastic demand
Consumers can easily switch to alternative products when the price rises, causing demand to fall