Revision Test 1 Flashcards
What is the Law of Supply?
The law of supply states that the higher the price the greater the amount or quantity that producers are willing to supply.
What is the Law Of Demand?
The law of demand states that the lower the price, the greater the quantity or amount that consumers are willing to buy.
Name two factors for a successful market.
Factors for a successful market:
- Strong Competition
- The consumer being king
Define economics.
The study of economics is about the forces which determine how production occurs, how resources are allocated, how proceeds are distributed.
Define Consumers.
Consumers are individuals or groups that purchase goods and services.
Define Needs.
Needs are goods or services that are required for an individual or group to survive.
Define wants.
Wants are goods or services that would make life more enjoyable, but are not essential.
Define Scarcity.
When a supply of a product is not always available.
Define opportunity cost.
Opportunity cost is the benefit lost when a decision is made.
Define producers.
A company that produces and supplies a product.
What are natural resources.
Natural resources are the goods that occur naturally and have a limited supply.
What are Labour resources.
Labour resources are the manpower that is provided by the staff you have hired.
What are capital resources?
Capital resources are manufactured or producer goods.
What are the three economic questions?
1-what to produce?
2-how to produce?
3-for whom to produce?
Define market.
Markets are institutions or organisations, where particular goods or services are bought and sold at prices that are negotiated between buyers and sellers.
