humanities glossary

economy

economy is a system that manages how a society produces and distributes and consumes goods and service

needs

nessasary for survival food water clothing shelter and sleep

wants

not needed for survival but is a luxury

Producers

aim to satisfy these needs and wants by producing goods and services

Consumers

individuals and buisnesses who have a need and want to be satisfied

goods

a phycical item that can be touched and are purchased by customers eg phone laptop shoes

services

An activity that is performed to assist a consumer in exchange for payment. eg. haircut, cleaning, Uber ride

Land

Natural resources, the gift of nature eg. fertile pastures for crops and farm animals

Labour

The people power (human skill and effort) available to work in the production process

Capital

Machinery, technology and buildings made by people to assist in the making of goods and provision of services.

Demand

your ability and willingness to pay for a particular item or service.

Law of Demand

As the cost of something increases, people will demand less. If the cost of something decreases, people will demand more.

Scarcity

when there aren't enough resources to satisfy everyone's needs/wants

Supply

Supply is the amount of a good or service a seller offers for a particular price at a particular time.

Law of Supply

As the price of something increases, producers will produce or offer more. If the price of something decreases, producers will produce or offer less.

Equilibrium

the quantity of a product supplied meets the quantity of the product demanded every buyer finds a seller and every seller finds a buyer.

Shortage

When the quantity demanded by consumers is greater than the quantity producers are willing to supply

surplus

when the quantity supplied is greater than the quantity demanded

Entrepreneur

individuals who have an idea for a good or service that they transform into a profit-making business.