Chapter 1 Flashcards
(21 cards)
What is a consumer
A person or organization that directly uses a good or service.
What is a producer
A person, company or country that makes grows or supplies goods and services.
What is the government
A political authority that decides how a country is run and manages its operation
What is a good
A tangible product
What is a service
An intangible product, it cannot be seen or touched
What is profit
The amount of money a producer has left after all costs have been paid
What are the four factors of production
Land labour enterprise capital
What is interdependence
The economic actions of one group is likely to impact another
What is meant by factors of production
The resources in an economy that can be used to make goods and services
What is land in Factors of production
The natural resources available for production in an economy eg. oil
What is labour in Factors of production
The workforce available for production in an economy
What is capital in Factors of production
Man -made aids to production in an economy eg. machinery, roads
What is enterprise in Factors of production
The factor of production that involves taking a risk and organizing the other three factors in production
What is the economic problem ?
There are unlimited wants for goods and services but there are only scarce resources to make them.
what are unlimited wants?
The infinite desire for something
What are scarce resources
when there is an insufficient amount of something to satisfy all wants
What are the three key questions for reducing economic problems
How should goods and services be produced?
What should be produced?
For whom should these goods and services be produced?
What is opportunity cost?
The next best alternative given up when making a choice.
What is economic sustainability?
The best use of resources in order to create responsible development or growth now and in the future
What is social sustainability
The impact of development or growth that promotes an improvement in quality of life for all now and in the future
What is environmental sustainability
The impact of development or growth where the effect on the environment is small and possible to manage now and in the future