Economics
Refers to the economic problem of having limited resources with unlimited wants
What is scarcity
Things that people must have to survive
What are needs
Things that people would like to have but can live without
What are wants
The direct trading of goods and services between people without the use of money
What is barter
Value of the thing given up when a choice is made between two things
What is opportunity cost
Someone who buys goods and services
What is a consumer
Actions done for others in exchange for payment
What are services
Tangible items that people consume or use
What are goods
Goods and services purchased from the overseas sector
What is imports
The natural resources used to produce goods or service
What is land
Someone who makes goods or provides services
What is a producer
The study of how individuals, governments and business make choices about allocating scare resources
What is economics
The effort people contribute to the production of goods and services
What is labour
A tractor is this type of factor of production
What is capital
This is an organisation engaged in the trade of goods and services to consumers.
What is a business
Economic system in which the government controls and sets prices
What is command/planned economy
This occurs when each individual member of the economy has a unique set of talents, abilities, skills and interests that make them uniquely able to perform a certain job
What is specialisation
Economic system in which barter is used, and agriculture is the main employment
What is a traditional economy
The three basic economic questions each country must ask when developing the economic plan
1) What goods/services will be produced?
2) How will goods/services be produced?
3) Who will consume the goods/services / how to distribute?
The four main types of economic systems
What is
1) traditional economy
2) command/planned economy
3) market economy
4) mixed market economy
The four factors of production
What are
1) land
2) labour
3) capital
4) entrepreneurship
The economic system in which individuals/businesses decide what, how, and how much will be produced/sold
What is a market economy
Skills, initiative and good new ideas that are provided by people to businesses
What is Entrepreneurship
A system that protects private property and allows a level of economic freedom, but also allows for governments to interfere in economic activities in order to achieve social aims.
What is a Mixed Market Economy
This term analyses the way the world works by comparing the costs of any activity with the benefits generated by the activity
What is Opportunity Cost