C1:Economic Problems
- Created by: Roy Cheng
- Created on: 13-03-13 01:25
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- C1:Economic Problems
- Definition
- Using scarce resources to satisfy unlimited wants
- Questions
- For whom to produce
- How to produce
- What to produce
- How much to produce
- Factors of Production/Factor endowment
- Land
- Labour
- Capital
- Entrepreneur
- Increase production
- Specialisation
- Definition
- Individual and firms concentrate upon what they are best at and produce those goods or services rather than others
- Effects
- Exchange goods and services/Trading
- Advantage
- Disadvantage
- Definition
- Division of Labour
- Definition
- The breakdown of work into its tasks or parts and assigned to various people, groups or machines for the purposes of efficiency.
- Advantage
- Disadvantage
- Definition
- Specialisation
- Payments
- Money
- Definition
- Anything that is generally acceptable as a form of payment
- Characteristics of Money
- Durability
- Acceptability
- Portability
- Divisibility
- Scarcity
- Homogenous
- Difficult to forge
- Functions of Money
- Store of value
- Measure of value
- Medium of exchange
- Means of deferred payments
- Definition
- Barter
- Disadvantage of Barter System
- Value difference
- Need double coincidence
- Low durability
- Untitled
- Disadvantage of Barter System
- Money
- Opportunity cost
- Definition
- Best alternative forgone
- Definition
- Definition
- Untitled
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