The economic problem

• What is the economic problem ?

  how to satisfy unlimited wants and needs with limited resources
• What are the four factors of production ?

  land, labor, capital, enterprise
• What are the BRIC economies?

  Brazil, Russia, India, China
• What is specialisation ?

  Narrowing the production of goods to only a few different items.
• What is globalisation?

  It refers to the increasing interdependence of the world economies.
• What is the term for specialisation by individuals called?

  Division of labour
• What famous economist wrote about the division of labour in 1776?

  Adam Smith
• What is labour productivity?

  A measure of output per worker
• What is capital?

  the tools and machinery used in the production process
• what is land?

  natural resources
• what is labour

  The effort from the workers
• what is enterprise?

  the person or firm taking the risk.
• What are the MINT countries?

  Mexico, Indonesia, Nigeria, Turkey
• The economic problem is faced by …

  • Consumers
  • producers
  • government
• What is opportunity cost?

  the value of the next best alternative foregone.