Tom Keagle 70-101 - Ramirez HOMEWORK #1 Ch. 1 Review 1, 3 Analysis 5, 7 1. The factors of production are the resources that a country's businesses uses to produce goods and services and they include labor, capital, entrepreneurs, physical resources, and information resources. Without any of these factors the business cannot succeed but I would think that the factor that influences the success of the business the most would be the entrepreneur because this is the person that makes all of the decisions based on all of the other factors. For example, the entrepreneur decides how to use the physical and information resources in order for the business to make the most profit. 3. GDP is the gross domestic product, which means the total value of all goods and services produced within a given period by a national economy through domestic factors of production. The real GDP is the GDP adjusted to account for the changes in currency values and price changes. GDP measures the aggregate output and through that it also measures economic growth. Real GDP measures
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This note was uploaded on 10/19/2011 for the course BUS 70160 taught by Professor Kesden during the Spring '11 term at Carnegie Mellon.