Flashcards in Economics Deck (24):
What is a consumer?
A person who purchases goods and services for a personal use
What is a need?
Needs are goods or services that are required to survive
What is scarcity?
The state of being scarce or in short supply
What is a want?
A want is something you would like to have but it is not necessary
What is economics?
Economics is the study oh how society chooses to use its limited resources to produce goods or services to satisfy unlimited wants.
What is the economic problem?
It assumes human wants are unlimited but the needs to satisfy human wants are scarce
What is opportunity cost?
The loss of other alternatives when one alternative is chosen.
What are the four types of resources?
capital, enterprise, land, labour (C,E,L,L)
What is land?
The natural resources used in the production of goods and services. Including the sun, coal and soil
What is labour?
This is the human effort, physical and mental that goes into producing goods and services. Including teacher, builder, journalist
What is capital?
These are the man made items used by workers to produce goods and services. Including hammer, computer, drill
What is enterprise?
The ability to combine the other three resources to produce a good or service. They manage or co-ordinate the business
What is a renewable resource?
A natural resource that can be reused or replenished naturally with the passage of time, there is endless supply of it. Eg. Wind energy, solar energy, biomass energy
What is a non-renewable resource?
Have a limited supply and will eventually run out. Eg. Oil,coal,natural gas,nuclear
What is an entrepreneur?
A person who sets up a business, taking on financial risks in the hope for profit
What is profit?
Profit is a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something
What is a good?
Items that you can touch
What is a service?
Things that are done for you by others
What are the characteristics of a want
- wants are unlimited
- wants are complimentary
- wants are recurrent
- wants are competitive
- wants are individual
- wants are collective
Explain "wants are unlimited"
Our wants are never ending, as soon as we satisfy one want there is something else we want
Explain "wants are recurrent"
Some wants occur again and again. Eg getting your hair cut
Explain "wants are collective"
These are the items the whole community want and are provided by the government using the taxes that we pay. Eg parks, car parks, airports
How do u calculate profit?
Profit = revenue - production cost