Studied by 11 people
Enterprise
________- All the people that have skills & those who have risk- taking abilities.
Opportunity cost
the sacrifice made of the second best option when making a choice or a decision
Businesses
________ combine scarce factors of production and employ people to make products (goods or services) which satisfy peoples wants.
Specialisation
________- Divisions of labour in the production process- different tasks split up to workers.
Capital
________- All finance, machinery & equipemnent required for manufacturing goods.
competetion
Increasing ________- therefore businesses need to keep costs low.
Monopoly
the exclusive possession or control of the supply or service
The shortage of goods and services
we are not able to have everything
Increasing competetion
therefore businesses need to keep costs low
specialised task training
increasing productivity (out put per worker)
save time
from moving people from different stages of production
Added Value =
selling prices - cost of components (or materails)
The factors of production are (remember CELL)
Capital, Enterprise, Land & Labour
What is the economic problem?
Unlimited wants + Limited resources = scarcity
Specialization
Occurs when people and businesses concentrate on what they are best at
What is the aim of a business
Businesses combine scarce factors of production and employ people to make products which satisfy people’s wants
Mixed economy
an economic system that combines private and state enterprises
Needs
Needs are essential goods & services. They satisfy the basic things in life
Wants
Wants are non-essential goods & services that people would like to have. They are linked to luxuries & our hobbies. Wants are unlimited.
Note 
Flashcard (61)