economics 1

economics

the study of how a society shares the worlds limited resources to satisfy the wants and needs of individuals

micro economics

looks at how individuals, households and businesses make decisions and use resources

macro economics

looks at the economy as a whole, including unemployment, inflation and economic growth

economic resources

the factors used in producing goods/services

scarcity

when there are unlimited needs and wants but limited resources available

wants

Something an individual desires but is not essential for survival

needs

things that we cannot live without that support basic human functions

goods

Tangible products that are used to satisfy wants and needs

services

skills, knowledge or effort that are offered as an intangible product that satisfies a want or need

consumer

an individual who purchases goods/services for personal use

producer

an individual or business involved in producing/creating goods and services

specialisation

how an individual/business/country focus on the production of a specific products, creating competition and efficiency

interdependence

how participants in an economy (individuals/businesses) rely on each other to provide goods/services

imports

purchases of a good or service by a domestic economy from a foreign economy

exports

a good/service produced by a domestic economy and then sold to another country

tariffs

a tax imposed by a gov. on goods/services imported other countries (makes imports less desirable/competitive)