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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


What are 3 things a business can do to improve profit?

Increase sales revenue
Decrease costs
Focus on the more profitable items