Need or Want?
Water
Need
Food and beverage
Goods
Resources that can be replaced as they were used to produce goods and services.
Renewable resources
List 4 Economic resources (Factors of Production)
Land, labour, capital and enterprise
What does Free goods mean?
Unlimited in supply/ not scarce/ things produced without effort
Coke
Want
Clothes
Goods
Opportunity cost
All other things remaining the same
Ceteris paribus
Give two examples of free goods?
Air, sunlight...
Define "needs"
Essential for survival / healthy living
Education
Service
A lack of goods and services available to satisfy unlimited wants.
Scarcity
An economy in which all decisions concerning production, investment, prices and incomes are determined by the government.
Planned Economy
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
How can scarce economic resources be most effectively used to satisfy people´s unlimited needs and wants?
The economic problem
An economy in which goods are bought and sold, and prices are determined by the market without intervention by the government.
Free Market Economy
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 (people are never satisfied)
Why do businesses produce goods and services?
Because people need or want it
Shows the maximum possible output for two goods or services with a given amount of resources.
Production possibility curve (PPC)
A situation where the economy´s resources are not efficiently allocated - market not producing enough goods & services to satisfy consumer´s needs and wants
Market Failure
Explain Law of Demand
As the price of a good or service falls, the quantity demanded increases, and vice versa.