Economics unit 1 - introduction to economics

Consumer

A person or organisation that directly uses good or service

Producer

A person, company, country that, makes, grows or supplies goods and/or services

Government

A political authority that decides how a country is run and manages its operations

Good

A tangible product

Service

An intangible product

Profit

The amount of money a producer has left after all costs have been paid

Interdependence

When the actions of one group effects each other

Factors of production

The resources in an economy that can be used to make goods and services

Factors of production

CELL - capital, enterprise, Labour, Land

Economic problem

How to best use limited resources to satisfy the unlimited wants of people

Opportunity cost

The next best alternative given up when making a choice

Economic choice

An option for the use of selected scarce resources

Economic sustainability

The best use of resources in order to create responsible development or growth, now and into the future

Social sustainability

The impact of development or growth that promotes an improvement in quality of life for all, now and into the future

Environmental sustainability

The impact of development or growth where the effect on the environment is small and possible to manage, now and into the future