Needs and wants Flashcards
(25 cards)
Whats a resource
Something that can be used
Whats need
things that individuals MUST have to sustain life
Whats want and its problem
things that individuals would like to have but are NOT NECESSARY to survival
It is unlimited
Whats scarcity
problem of limited means against unlimited wants
What are 4 factors of production
Land, Labour, Capital(money or machine), Enterprise(skill and knowledge of making the other 3 work)
What are the 3 choices businesses have to make
What to produce
How to produce it
Who to produce it for
Whats oportunity cost
the options we have not chosen or second best option
Whats producer
Uses resouces to create goods and services
Whats Consumer
Person who purchases products produced by the producer
Goods
Objects with physical presence that fulfill wants or needs
Free goods
An vastly abundant resource that’s not a contraint on economic activity( air sunshine)
Economic goods
Products that are scarce and have cost
Consumer good
Goods that are consumed by the consumers rather than by manufactureers for producing other goods
Capital(producer) goods
Used in making other goods
Services
Action of helping or doing work for someone
Purpose of business activities
Satisfy demand?meet the needs and wants of the consumer
Whats statisfying demand
Being able to sell something at a price that the consumer is willing and able to pay for
Whats added value
Actual amount more achieved between the cost of the materials and selling price
Difference between added value and profit
profit considers other factors other than the cost of the material
Whats creating value
Using skills to manipulate materials into something that consumer will pay more for than the original cost of the materials
Ways of creating value
Packaging
Advertising
Logos
Design
What is specialisation
When businesses or individuals concentrates on whtat they are best
5 benefits of specialisation within businesse
- Businesses can become known for producing a particular product and can become the leader for that product
- You can charge more for a specialist product you produce
- Businesse can easily specialise with the production of equipment that lets them do specialist jobs
- incresed output
- less waste of time and materials
A benefit of specialisation for employee
Worker can expect higher wage with a special skill
