Needs and Wants
What are needs?
Things we must have to survive, like food and water.
What is demand?
The desire and willingness of consumers to buy something.
What is a consumer?
Someone who buys goods and services.
What are the factors of production?
The four resources used to make goods and services.
The two groups in the two-sector circular flow model are...
Households and Businesses
What is an Entrepreneur ?
An Entrepreneur someone who takes on the risk of starting their own business.
What are wants?
Things we would like to have but can live without, like gaming consoles or lollies.
When price goes up, demand usually goes down — this is called the _____.
The law of demand
What is a business?
A place or organisation that sells goods or services for profit.
The factor of production land includes these...
Natural resources like land, forests, or water.
Households provide this to businesses in return for income.
labour
What is innovation
Innovation is the act of starting something new or different.
What is scarcity?
The economic problem where wants are unlimited but resources are limited.
What are substitutes?
Goods that are often bought instead of each other, like Coke and Pepsi.
What is interdependence?
Consumers and producers relying on each other.
The factor that involves starting businesses and taking risks is?
Enterprise
Businesses provide these to households.
Goods and Services
Name three skills of and entrepreneur.
Initiative
Planning
Problem solving
Networking
What is opportunity cost?
The “next best option” you miss out on when you make a choice.
What are complementary goods?
Goods that are bought together, like burgers and chips.
What do businesses do to respond to the demands of the health conscious consumer?
Add healthier preferences: adding salads or low-sugar options, switch soft drink to water, non alcoholic substitutes.
Tools, machines, and buildings used in production are called?
Capital
The model showing movement of money and resources between households and firms is called...?
The circular flow model
What is a S.M.A.R.T. goal ?
Specific
Measurable
Achievable
Relevant
Time- bound
Scarcity forces people to do this, because they can’t have everything.
Make choices
One thing that can increase demand even if price stays the same.
Advertising
When customers want eco-friendly products, businesses may change this.
packaging / materials / product ingredients
Human effort and workers used to make products is called?
Labour
In the circular flow model, money goes from households to firms when households do this.
Buy goods and services.
What is a Social Entrepreneur?
Social Entrepreneurs aim to make the world a better place through their business activities.