Term 1: The Economy and Entrepreneurship

This set of flashcards covers key concepts from the lecture notes on economics and entrepreneurship.

What is bartering?

A form of trade in which people exchange goods without money.

Define currency.

A medium of exchange.

What does consumer economy mean?

An economy in which businesses encourage consumers to spend as much money as possible by buying their goods.

What are promissory notes?

Legally binding notes that buyers use to promise sellers unconditionally that they will pay specific amounts of money within a specific time.

What is the economic problem?

The problem caused by the limited resources that are available to satisfy people's unlimited needs and wants.

Difference between primary and secondary needs?

Primary needs are essential for survival, while secondary needs are not essential for survival.

What does the term 'recycling' refer to?

Taking used materials and turning them into new products so they can be used again.

What are the three business sectors?

Primary sector, secondary sector, and tertiary sector.

Describe a formal business.

Businesses that pay tax, are monitored and regulated by the government, and whose turnover is counted as part of the country's GNP.

What is an informal business?

A business that is not taxed and is not monitored or regulated by the government.

What are the factors of production?

The inputs used to produce goods and services, including labor, capital, land, and entrepreneurship.

What is electronic banking?

Doing your banking using the internet or an app instead of going to the bank.

Define sustainability in the context of economics.

To use natural or recycled goods in such a way that it doesn't harm the environment.

What are consumer goods?

Goods that businesses manufacture for the mass market.

What is a service?

Work that people do for others, like teaching, healthcare, or hairdressing.