Economics key terms and concepts

Sam Allen

What is a consumer?

An individual or organisation that direclty uses a good or service. For own personal use rather than production, end user.

What is a good?

Tangible product, can be seen and touched eg

What is a service?

Cannot be seen or touched, intangible, eg

"What is the government?

Group of individuals that have power to run a country. make and enforce rules. spends money in economy. affect economy with policies. eg

What is a producer?

Supply goods and services. eg. make choices about what and how they produce, influence

What is interdependence?

One group responds to actions of another group. eg.

What is capital?

Human made aids to production. eg. used to support and enable infrastructure

What is enterprise?

Risk taking in organising other three. organise production and bear risk, eg. willing to take forward idea

Explin factors of production?

Resources or inputs, means by which producers produce goods and services eg.

What is land?

Natural resources in economy. all raw materials, naturally occuring - eg

What is labour?

HUman resources available, depends on eg.
Concenred with workforce in physical and mental effort involved in production

What is scarce resources?

Insufficient amount to satisfy all wants
Fewer things to make goods and services than desired, finite, insufficient

What are unlimited wants?

INfinite desire for something. whether or not they have resources, too many different uses for resources

What are needs?

Something a consumer muist have to survive, limited eg. could be possible to satisfy

What are wants?

Unlimited, include anything a consumer would like whether or not they have resources eg.

What is the economic problem?

How to best use limited resources to satisfy unlimited wants of people
Gap
Choice is allocation of resources

What is oppurtunity cost?

The value of the next best alternative given up when making a choice
eg.

What are economic choices?

Coptions for the use of selected scarce resources, weighed and allocated eg.

What is economic sustaibability?

Responsible development or growth, now and into the future. best and most responsible use of scarce resourecs so a firm can keep growing overtime eg. considers cproduction cost

What is social sustainability?

Impact of development or growth promotes improvement in quality of life for all, now into the future
affects communtiies wellbeing, requires meet of basic needs encourages fairness eg. traffic

What is environmental sustainability?

Impact of development or growth where the effect is small and possible to manage, now ant inot the future eg. pollution
renewable non renewable`

What is a market?

Way of bringing buyers and sellers together to buy and sell goods and services
eg. physical market

What is the