Chapter 1: Vocabulary Flashcards
(18 cards)
Capital goods
Goods used to produce other goods as tools, equipment and machinery.
Barter system
A system of exchange which involves the swapping of goods between individuals.
Consumers
Individuals who use or “consume” goods and services to satisfy their needs and wants.
Consumer goods
Goods produced for general use by the public. They can be durable and non-durable.
Customers
Individuals, or other businesses, that buy goods and services supplied by businesses.
De- industrialization
The decline in manufacturing.
Division of labour
Specialization in specific tasks or skills by individuals.
Factors of production
Resources used by business to produce goods and services.
Markets
Anywhere that buyers and sellers communicate to exchange goods and services.
Money
Any substance which is generally accepted as a means of exchange.
Needs
Human requirements which must be satisfied for survival.
Opportunity cost
The benefit of the next best option foregone when making a choice between a number of alternatives.
Primary production
Activities which involve the extraction of raw materials from the earth and the growing of food.
Secondary production
Activities such as manufacturing which transform raw materials into finished goods.
Specialization
In business, the production of a limited range of goods.
System
Parts that work together to achieve an objective; a system can be a communications system, a business, an economic or a political system
Tertiary production
Activities which involves the provision of services.
Wants
Human desires which are unlimited.
