Flow of Income Circular Flow of Income

Question Answer
Factors of Production Land, Labour, Capital & Enterprise
Land A countrys main resource inc. land rivers, seas, deserts, forests, minerals, metals, gas, oil, coal, water, weather, crops.
Renewalble can be replaced by the environment over a short period of time e.g. forests.
Non-renewable Cannot be replaced e.g. oil & coal
Labour Human labour
Capital Can be money or items used to produce goods or provide services e.g machinery, equipment, technology, tools.
Enterprise Takes the risk by investing money to start a business in the hope of making a profit.
Economies of Scale The more you produce, the cheaper the unit cost.
Economic System The way a government organises it's countrys economy, how it controls the factors of production.
Free Economy Citizens are free to make all decisions about the production of goods and services e.g. USA
Centrally Planned Economy The Government makes all the decisions about economic activity e.g North Korea
Mixed Economy A mixture of privatly owned and and state owned enterprises e.g. Ireland
Semi state / state sponsored Businesses that are set up and funded by the government
Factors of Production Land, Labour, Capital & Enterprise
Land A countrys main resource inc. land rivers, seas, deserts, forests, minerals, metals, gas, oil, coal, water, weather, crops.
Renewalble can be replaced by the environment over a short period of time e.g. forests.
Non-renewable Cannot be replaced e.g. oil & coal
Labour Human labour
Capital Can be money or items used to produce goods or provide services e.g machinery, equipment, technology, tools.
Enterprise Takes the risk by investing money to start a business in the hope of making a profit.
Economies of Scale The more you produce, the cheaper the unit cost.
Economic System The way a government organises it's countrys economy, how it controls the factors of production.
Free Economy Citizens are free to make all decisions about the production of goods and services e.g. USA
Centrally Planned Economy The Government makes all the decisions about economic activity e.g North Korea
Mixed Economy A mixture of privatly owned and and state owned enterprises e.g. Ireland
Semi state / state sponsored Businesses that are set up and funded by the government
Factors of Production Land, Labour, Capital & Enterprise
Land A countrys main resource inc. land rivers, seas, deserts, forests, minerals, metals, gas, oil, coal, water, weather, crops.
Renewalble can be replaced by the environment over a short period of time e.g. forests.
Non-renewable Cannot be replaced e.g. oil & coal
Labour Human labour
Capital Can be money or items used to produce goods or provide services e.g machinery, equipment, technology, tools.
Enterprise Takes the risk by investing money to start a business in the hope of making a profit.
Economies of Scale The more you produce, the cheaper the unit cost.
Economic System The way a government organises it's countrys economy, how it controls the factors of production.
Free Economy Citizens are free to make all decisions about the production of goods and services e.g. USA
Centrally Planned Economy The Government makes all the decisions about economic activity e.g North Korea
Mixed Economy A mixture of privatly owned and and state owned enterprises e.g. Ireland
Semi state / state sponsored Businesses that are set up and funded by the government
Privatisation The transfer of ownership and control of government or state assets or firms to private investigators e.g. Aer Lingus