ECONOMICS CARDS

• The remuneration or payment made for the use of factors of production which are limited in supply is called economic rent
• In an economy where injections exceed leakages, the national income will increase
• In a centrally-planned economy, decision-making is centralised and private initiative and free choice are limited
• The Coronavirus Disease 2019 was declared a pandemic by the World Health Organisation
• Demerit goods


  Goods which are regarded as socially harmful
• In South Africa, parliament can be classified as the legislative arm of the state
• Production


  The activities that provide the goods and services to satisfy wants
• Marginalised groups are excluded from the economy
• Economic growth


  An increase in the productive capacity of the economy over a specific period of time
• Socio-economic


  Relating to society and the economy
• Economic rent


  Payment made for the use of a factor of production which is limited in supply
• Real flows


  The flow of goods and services
• Centrally planned economy


  Resources are allocated by government
• Poverty line


  The minimum amount of money needed to pay for basic needs
• Productivity


  Ratio of output to input
• Scarce resources


  Resources that are scarce and that people are willing to pay for
• Perfect competition


  Production and prices are determined by unrestricted competition between privately owned businesses
• Public enterprises


  State owned businesses like SABC and ESKOM
• Scarcity


  When something is short in supply or not readily available
• Informal sector


  This sector is associated with activities that include street sales and handicrafts
• Subsidies


  Incomes given by the state to individuals or businesses for a specific purpose
• The public sector is important
• Gross Value Added


  The value added in production
• The primary sector has declined
• Another factor of production not mentioned is land
• Entrepreneur


  A person who sets up a business or businesses, taking on financial risks in the hope of profit
• Educational opportunities are important for entrepreneurship
• The South African government has responded to COVID-19's social and economic impact through various measures
• Entrepreneur


  Description of the term
• Social transfers


  Main objective