Need or Want?
Air?
Need
Food and beverage
Goods
Tomato
Input
Consumer
Person who uses or guys products
What does Free goods mean?
Unlimited in supply/ not scarce/ things produced without effort
iPhone 14 Pro
Want
Clothes
Goods
Tomato sauce
Output
Natural respurce
Things that are raw and natural used to create products.
Give two examples of free goods?
Air, sunlight,
Define ‘needs’
Essential for survival / healthy living
Education
Service
Gold
Input
Scarce
Not very much/ limited supple
What does Economic goods mean?
Goods you can buy / limited supply/ requires effort to make these
Define wants
Non essential goods or services people would like to buy
Health care
Service
Water
Input
Lack of
not enough of
What is the difference between Economic good and Free goods?
Free goods are unlimited and require no effort to get whereas Economic goods require effort and are limited
What does the term “unlimited wants’ mean?
People always want and desire new things so it’s unlimited
Why do businesses produce goods and services?
Because people need or want it
Coffee
Output
Why is there an economic problem?
Because people always want more ( unlimited wants) which does not balance with the limited supply of resources.
What are the 4 inputs needed to provide goods and services?
Land, labour, capital, entrepreneurship or enterprise