keywords term 1 test Flashcards
(16 cards)
factors of production
resources needed to produce goods and services
land
oil, minerals field
labour
number of people / workers / employees
capital
buildings, machinery, money
enterprise
taking a risk to start a business or to expand it
business
process of producing goods and services to satisfy consumer demands (needs and wants)
opportunity cost
the benefit that could have been gained from an alternative use of the same resource
added value
the difference between the cost of production and the price of finished good
services
intangible activities that a company provides to its customers
scarcity
not enough goods and services to meet the wants of the population
specialisation
people and businesses concentrate on what they are best at
division of labour
each employee focuses on just one task to increase efficiency and productivity
goods
items, articles, products or commodities that customers purchase from companies
needs
anything required for human survival
wants
anything people would like to have, or desire
effective demand
the willingness and ability of consumers to purchase goods at different prices
