financial

Needs

• Definition: Basic requirements for survival.

• Example: Food, water, shelter, and clothing.

Wants

• Definition: Desires that go beyond basic needs, not essential for survival.

• Example: A new smartphone, luxury car, designer clothes.

Resources

• Definition: Inputs used in the production of goods and services.

• Example: Raw materials (like wood, iron), labor, capital (machines, buildings).

The 3 Types of Resources: Labour, Capital, & Natural

1. Labour
   
   

   • Definition: Human effort used in the production process.

   • Example: Factory workers, teachers, doctors.

2. Capital
   
   

   • Definition: Tools, machinery, buildings, and equipment used in production.

   • Example: A factory machine, computer software, office buildings.

3. Natural Resources
   
   

   • Definition: Raw materials found in nature used in the production of goods.

   • Example: Water, oil, coal, timber.

Renewable Natural Resources

• Definition: Resources that can be replenished naturally over time.

• Example: Solar energy, wind energy, trees (when managed sustainably), fish in well-managed fisheries.

Non-renewable Natural Resources

• Definition: Resources that cannot be replaced once they are depleted.

• Example: Oil, coal, natural gas, gold.

Scarcity

• Definition: The condition where limited resources are available to meet unlimited wants and needs.

• Example: Freshwater scarcity in many parts of the world, shortage of skilled labor in certain industries.

Opportunity Cost

• Definition: The value of the next best alternative that must be forgone when making a decision.

• Example: If you spend money on a vacation instead of investing in stocks, the opportunity cost is the potential return you could have earned from the stocks.

CSR – Corporate Social Responsibility

• Definition: A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

• Example: A company reducing its carbon footprint, donating to charity, or ensuring fair labor practices in its supply chain.

Greenwashing

• Definition: The practice of giving a false impression of environmental responsibility to gain consumer trust.

• Example: A company claiming its products are "eco-friendly" while using unsustainable practices, like a bottled water brand labeling their packaging as "green" when it still uses single-use plastic.

Material Living Standards

• Definition: The level of economic well-being based on tangible, material goods and services.

• Example: Access to high-quality healthcare, a well-maintained home, a car, access to electricity.

Non-material Living Standards

• Definition: The quality of life based on non-material factors such as freedom, education, and environment.

• Example: A good work-life balance, personal safety, community involvement, access to education and culture.

GDP – Gross Domestic Product

• Definition: The total market value of all final goods and services produced within a country in a given period (usually a year or a quarter).

Example: The GDP of the United States in 2023 was approximately $26.7 trillion