MML economics

What are consumer needs?

what people must have or want to be satisfied when buying goods or services. ex. phone, water

What are consumer wants?

things people would like to have, but don’t need to survive. ex. shoes

What is opportunity cost?

the value of the lost alternative to which the scarce could’ve been used ex. time

What is relative scarcity?

A problem where resources are limited and aren’t enough to satisfy unlimited humans needs/ wants

What is Land/ Nature

natural resources used in production ex. water, land minerals

What is labour?

human effort used to make goods/services ex. work done by people

What is capital?

man-made tools and equipment used in production ex. machines, computers

What is demand?

amount of a particular good/service that buyers are willing and able to buy at a particular price

What is supply?

is the amount of a product or service that producers are willing and able to sell at a certain price over a period of time.

Factors of production

Land, labour and capital

Which line is demand?

The one on the top left

Which is the Supply Line?

The one on the top right

What is the equilibrium? Where is it?

It is when the supply and the demand curve/ line meet. It is the blue dot in the centre

Economic growth

increase production of goods and services in a country or region over a specific period of time

Inflation

general price of goods and services rises

unemployment

people who are able and willing to work, who are unemployed seeking employment

What happens to the demand curve when it increases?

The curve shifts to right

What happens to the demand curve when it decreases?

Demand curve shifts to the left