Business - Life Work and Money

Relative Scarcity

Limited resources compared to unlimited wants

Scarcity

The shortage of resources available to satisfy people's unlimited wants and needs.

Need

Something essential for survival or basic living.

Want

Something you would like to have but is not essential for survival.

Consumer

A person who buys or uses goods and services.

Producer

A person or business that makes or sells goods and services.

Goods

Physical products that can be bought and sold.

Services

Activities or work done for people rather than physical products.

Entrepreneur

A person who starts and runs a business

Factors of Production

The resources used to produce goods and services.

Land

Natural resources used to produce goods and services.

Labour

The physical and mental work people do to produce goods and services.

Capital

The tools

Management (Enterprise)

The people who organise the business

Opportunity Cost

The next best alternative that is given up when making a choice.

Cost-Benefit Analysis

Comparing the costs and benefits of a decision before making a choice.

Living Standards

The quality of life experienced by people.

Material Living Standards

The goods and services people can afford

Non-Material Living Standards

The non-physical aspects of quality of life