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Economics: Difference between revisions
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* {{Q|'''Factors of production''' are the ''inputs'' to the production process. ''Finished goods'' are the ''output''. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a [[w:production function|production function]]. There are three ''basic'' (AKA classical) factors of production: '''[[w:land|land]], [[w:Labor (economics)|labor]], [[w:Capital (economics)|capital]]'''|Wikipedia|[[w:factors of production|factors of production]]}} | * {{Q|'''Factors of production''' are the ''inputs'' to the production process. ''Finished goods'' are the ''output''. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a [[w:production function|production function]]. There are three ''basic'' (AKA classical) factors of production: '''[[w:land|land]], [[w:Labor (economics)|labor]], [[w:Capital (economics)|capital]]'''|Wikipedia|[[w:factors of production|factors of production]]}} | ||
* '''Gross domestic product''' ('''[[w:GDP|GDP]]''') is the [[w:market value|market value]] of all officially recognized final goods and services produced within a country in a given period of time. GDP [[w:per capita|per capita]] is often considered an indicator of a country's [[w:standard of living|standard of living]] ( Wikipedia ) | * '''Gross domestic product''' ('''[[w:GDP|GDP]]''') is the [[w:market value|market value]] of all officially recognized final goods and services produced within a country in a given period of time. GDP [[w:per capita|per capita]] is often considered an indicator of a country's [[w:standard of living|standard of living]] ( Wikipedia ) | ||
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* '''[[w:Terms of trade|Terms of trade]]''' ('''TOT''') refers to the relative price of exports in terms of imports. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. ( Wikipedia ) | * '''[[w:Terms of trade|Terms of trade]]''' ('''TOT''') refers to the relative price of exports in terms of imports. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. ( Wikipedia ) | ||
* '''[[w:Devaluation|Devaluation]]''' in modern [[w:monetary policy|monetary policy]] is a reduction in the value of a [[w:currency|currency]] with respect to those goods, services or other monetary units with which that currency can be exchanged. ( Wikipedia ) | * '''[[w:Devaluation|Devaluation]]''' in modern [[w:monetary policy|monetary policy]] is a reduction in the value of a [[w:currency|currency]] with respect to those goods, services or other monetary units with which that currency can be exchanged. ( Wikipedia ) | ||