Economics - Y8 Flashcards
Economics
The study of how people choose to use their limited resources to satisfy their unlimited needs and wants
Scarcity
When there is not enough of a resource to satisfy needs and wants
Resources
Anything that people can use to satisfy their needs and wants
Economy/Economic System
The way in which it organises itself in order to deal with the basic economic problem and answer the basic economic questions
Land
All things found existing in the natural biosphere
Labour
People and the capacity associated with human effort to make or produce things
Capital
The goods created by humans that are then used to produce other goods and services
Enterprise
The organisational skills and abilities needed to bring together land, labour and capital in order to manufacture goods produce services
Economic Problem
the need for individuals and society to make choices because wants exceed the amount of resources
needs
The essential items that must be provided if people are to stay alive
wants
Are non-essential items that are demanded or desired by people in order to make their live easier, happier or more fulfilled
Collective Wants
They have been created or produced because of a community decision, and may not have been provided if the decision had been left to individuals
Opportunity cost
The second choice or next best alternative
Consumer
Anyone who uses a resource (CELL) to satisfy a need or a want
producer
An individual or organisation that provides goods or services
