Studied by 50 people
need
a good or service considered essential for survival
want
goods or services considered desirable but not essential for survival
consumers
people who purchase goods and services for personal use
producers
people or companies that supply goods or services for sale
government
the organisation in charge of regulating consumers and producers
factors of production
land, labour, capital, enterprise
land
the natural physical resources that are available to an economy - anything that can be used on/in/under the ground
labour
human capital - the workforce of the economy who are the human input into production
capital
man-made inputs that are used to produce goods and services
enterprise
a specialised form of labour input - individuals who take the factors of production and covert them into goods or services to be sold for profit
the basic economic problem
limited resources, unlimited wants and needs
opportunity cost
what you don’t get out of your decision
market
where consumers and producers meet to exchnage goods and services, then interact to establish a price
factor markets
where factors of production are sold
product markets
where final goods and services are sold and bought
three economic sectors of the UK’s economy
primary, secondary, tertiary
primary
focuses on the extraction of raw materials
secondary
focuses on turning raw materials into finished products
tertiary
focuses on providing services
relative size of primary sector in UK
10%
relative size of secondary sector in UK
20%
relative size of tertiary sector in UK
70%
goods
tangible (physical) products
services
intangible (non-physical) products
specialisation
the process on concentrating on a specific number of tasks during the production of a good or service - can be achieved by workers, businesses, regions, countries
division of labour
when workers concentrate on different parts of a production process of a good or service
reward for land
rent
reward for labour
wages
reward for capital
interest
reward for enterprise
profit
Note 
Flashcard (73)