topic 3 business & the economy study Flashcards
(26 cards)
identify types of resources
land, labour, capital
what is land resources
Resources that occur naturally can be things like water oil and coal input nature example oil coal minerals and water
what is labour resources
Someone who is employed to do goods and services
what is capital resources
Capital resources and man-made products that are used in production of something some examples are manufactured good like computers and machines
the difference between needs and wants and explain why choices need to be made
the basic economic problem of relative
definition of consumer
Someone who purchases Goods and/or services
definition of producer
profit from something they do
definition of demand
Consumers wanting goods and services
definition of supply
Producing making goods and services
The amount/quantities of a product people want to buy (demand) is affected by the following factors
pricing
law of supply
the law of supply says the higher the price, the higher the amount of products that producers are willing to provide
opportunity cost
Benefits lost from choices made
relative scarcity
refers to the belief that there are more needs and wants of consumers then what is either physically available
demand factors (prefernces
Preferences relating to demand factors can be defined as consumers having a preference on what tastes they have/ what they like
what and how much to produce
Producers determine what and how much to produce by a number of factors but most importantly they by whether or not a consumer wants to buy a product decide if the product is going to make a profit all the factors include production availability
for whom to produce
sellers are producing for buyers with an income to this is the way for producers to make profit
needs
The goods and services that people believe are nessary for living including food clothing water healthcare and shelter
wants
Goods and services that assist us to enjoy a good standard of living their non-essential items in one not essential items that we need to survive.
markets
A place where people go to exchange goods and services
economics
- the study of scarcity and the use of resources, production of goods and services and the growth of production and welfare over time.
price mechanism
the mechanism that allows consumers to decide on a producer and producers to decide price
equilibrium price
price at which the level of consumer demand is equal to the amount producers are willing to supply
law of demand
the cheaper the price of a product, the more willing and able consumers are to buy it. As prices increase, the level of consumer demand decreases
