Part 1 Flashcards
(23 cards)
3 main economic groups
Consumers, producers and government
Consumers are
The buyers of goods and services
Producers are
The sellers of goods and services
Government are
A group of people who have the power to run a country
Interdependence
Means the economic actions of one group are likely to impact another
4 factors of production
Land
Labour
Capital
Enterprise
Land is
Includes all raw materials that are naturally occurring
Labour is
The work force, it is affected by the quantity and quality of people able to work
Capital is
Includes different types of machines and infrastructure
Enterprise
This function is perform by entrepreneurs
Debtors of production definition
The resources in an economy that can be used to make goods and services
Land definition
The natural resources available for production in an economy
Capital definition
The man made aids to production in an economy
Labour definition
The workforce available for production in an economy
Enterprise definition
The factor of production that involves taking a risk organising the other three factors in production
The economic problem
That there is unlimited wants for goods
Unlimited wants
The infinite desire for something
Scarce resources
When there is an insufficient amount of something to satisfy wants
Opportunity cost
The next best alternative given up when making a choice
Economic choice
An option for the use of selected scarce resources
Economic sustainability
The best use of resources in order to create responsible development or growth, now and into the future.
Social sustainability
The impact of development or growth that promotes an improvement in quality of life for all now and into the future
Environmental sustainability
The impact of development or growth where the effect on the small environment is small and possible to manage, now and into the future
