GCSE Economics Topic 1: Economic Activity

Vocabulary flashcards covering key definitions for GCSE Economics Topic 1: Economic Activity.

Consumer

A person who buys and uses goods and services.

Good

A physical product that can be bought or sold.

Government

The group of people who run and manage a country.

Producer

A person or business that makes goods or provides services.

Service

An activity provided for someone, usually in exchange for payment.

Production

The process of making goods or providing services.

Factors of production

The resources used to produce goods and services: land, labour, capital and enterprise.

Labour

Human effort, both physical and mental, used in production.

Land

All natural resources used in production, such as land, water and raw materials.

Capital

Man-made resources used to produce goods and services, such as machinery, tools and buildings.

Enterprise

The ability to organise the other factors of production and take risks to start or run a business.

Needs

Things essential for survival, such as food, water and shelter.

Wants

Things people would like to have but do not need for survival.

Economic activity

The production, distribution and consumption of goods and services.

Economic groups

Groups involved in the economy, such as consumers, producers, workers and the government.

Basic economic problem

Unlimited wants but limited resources, meaning choices must be made.

Opportunity cost

The next best alternative given up when a choice is made.

Scarce resources

Resources that are limited in supply compared with people's unlimited wants.

Unlimited wants

People have an unlimited number of desires and wants.

Economic choice

A decision about how to use scarce resources to satisfy wants and needs.

Economic sustainability

Using resources in a way that allows future generations to meet their needs.

Social sustainability

Improving people's quality of life and supporting fairness and wellbeing over time.

Environmental sustainability

Protecting the natural environment and using resources without damaging it for future generations.