商务英语复习题1备课讲稿.docVIP

14) List and describe the five factors of production. Answer: The factors of production are labor, capital, entrepreneurs, physical resources, and information resources. Labor refers to the physical and mental capabilities of people as they contribute to the economic system. Capital refers to the funds needed to create and operate a business enterprise. Entrepreneurs are individuals who embrace the opportunities and accept the risks of setting up and operating businesses. Physical resources are tangible things organizations use in the conduct of their business. Information resources include data and other information used by businesses. 15) How does a planned economy differ from a market economy? Answer: A planned economy relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. In a market economy, individuals control production and allocation decisions through supply and demand. 21) Differentiate between gross national product (GNP) and gross domestic product (GDP). Answer: Both gross national product (GNP) and gross domestic product (GDP) measure the economic performance of a national economy. Gross domestic product refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production. On the other hand, gross national product measures the total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located. 22) Explain the relationship between productivity and the standard of living. Answer: Standard of living refers to the total quantity and quality of goods and services that people can purchase with the currency used by their economic system. Productivity is a measure of economic growth that compares how much a system produces with the resources needed to produce it. Standard of living improves only through increases in