Making the Most of Your Resources (Junior Cycle Business)

Revises: Resources, needs and wants and financial vs opportunity cost

What is a resource

Anything we can use in order to meet our needs or help us achieve are goals

What are 3 characteristics of resources

• Useful and valuable

• Help us achieve things

• May be limited or scarce

What are the types of resources available to us

• Physical/capital

• Natural

• Human

• Financial

• Time

What is a capital resource

Goods made by people that are used to make other goods and provide services

What is a natural resource

Resources provided by nature

What is a financial resource

All types and sources of money, e.g. savings, income from employment (wages)

What is a human resource

The skills, abilities, and experience you and the people around you have available to help you

Why is time a valuable resource

It’s a limited resource; you cannot borrow or buy more time. You can use time to gather other resources

Why are physical/capital resources important

They enable people to meet their day to day needs and also help us travel, communicate and enjoy our leisure time

Why are financial resources important

They allow people to buy goods and services

What is a need

Something you can’t live without, e.g. food, water, clothes, shelter

What is a want

Something you’d like to have, but isn’t essential to live. Wants can make your life easier

What is money

Anything of value that is accepted by people in exchange for goods and services

What is a priority

Something that is more important than other options

What is a financial cost

The price of the items we choose to buy

What is the opportunity cost

The good or service we have chosen to go without in order to purchase another good or service