1. THE ECONOMY Flashcards
(11 cards)
What are products or goods?
Objects like clothes and shoes.
Other products include intermediate goods used to produce other goods.
What is an economic activity?
Producing, buying, or selling a product or service.
What are the three components of the economic process?
- Production
- Commercialisation
- Consumption
What does production refer to in economic process?
Activities that produce goods or services.
What is commercialisation in the economic process?
The distribution and sale of goods or services.
What is consumption in economic terms?
Goods or services are bought to satisfy a need.
Who are the economic agents?
- Consumers
- Businesses
- Public sector
What role do consumers play in the economy?
They buy goods and services.
What role do businesses have in the economy?
They produce and sell goods and services.
What does the public sector include?
The state and regional governments.
How does the state finance public services?
By taxing consumers and businesses.
