1. Economic Growth
1.1. An increase in the amount to produce goods and services compared to a previous year.
1.1.1. Measured by calculating the GDP
2. Recession
2.1. A temporary economic decline
2.2. Trade and industrial activity are reduced
2.3. Identified by a fall in GPD in successive quarters
3. Factors of Production
3.1. Natural resources
3.1.1. Non-renewable naturally accruing resources found in nature
3.1.2. Remuneration: Rent
3.2. Labour
3.2.1. All mental and physical human effort made to produce goods and services
3.2.2. Remuneration: Salaries and Wages
3.3. Capital
3.3.1. Money, buildings, equipment and other man-made items used in the production process.
3.3.2. Remuneration: Interest
3.4. Entrepreneurship
3.4.1. Organizing the factors of production into a business that satisfies consumer needs and earns a profit
3.4.2. Remuneration: Profit
4. Catalogues of Products
4.1. Durable goods
4.1.1. Expensive to acquire
4.1.2. Consumed a number of times
4.1.3. Last more than a year
4.1.4. E.g. Property
4.2. Semi-durable goods
4.2.1. Relatively inexpensive compared to durable goods
4.2.2. Do not last as long as durable goods
4.2.3. E.g. Cell phone
4.3. Non-durable goods
4.3.1. Perishable
4.3.2. Only consumed once
4.3.3. E.g food
4.4. Services
4.4.1. Intangible
4.4.2. Consumed as soon as they are delivered
4.4.3. E.g. An accountant
5. Reasons for international trade
5.1. Do not have the same access to all resources
5.2. Climatic conditions
5.3. Transport and communication
5.4. Undeveloped technology and/or social development
5.5. Specialized labour
6. Scarcity and the economic problem
6.1. Unlimited needs and wants
6.2. Limited means witch which to statist them
7. The Economic Systems
7.1. Capitalist Economy
7.1.1. Private individuals make economic decisions
7.2. Planned Economy
7.2.1. The government makes all the economic decisions
7.3. Mixed Economy
7.3.1. Both private individual and the government make economic decisions
8. The four participants in the economic cycle
8.1. Households
8.1.1. Starting block of the Economy
8.1.2. Every decision I make, is a decision in the Economy
8.1.3. Have needs and wants and have to fulfilled by the other 3 participants
8.2. Businesses
8.2.1. Aim is to make a profit
8.2.2. Makes a profit by selling to other 3 participants
8.2.3. Either produce goods or render a services
8.3. Government
8.3.1. Also called the public service sector
8.3.2. Acts as a producer of goods and services
8.3.3. Acts as a consumer
8.3.4. Obtain money from selling goods and services and acquiring taxes
8.4. The foreign sector
8.4.1. Not all countries have the access to all resources that's why they trade
8.4.2. Excess goods and services will be exported
9. Different economies
9.1. An open economy
9.1.1. When countries trade with other countries freely
9.2. A closed Economy
9.2.1. When countries don't trade with other countries because they can satisfy their own needs and wants