1.1 - Basic Economic Problem Flashcards
Need
something you cannot live without
Want
something that is a luxury and not necessary for survival
Basic Economic Problem
scarce resources but potentially unlimited desires
Government
create policies in the interest of producers and consumers
Producers
companies that sell goods/services to consumers
Consumers
a person/organisation that uses a good/service
Interdependence
the reliance on two or more people/things
Opportunity Cost
the next best alternative forgone
Factors of production
the inputs that go into production process
Land
natural resources derived from the environment
Labour
human workforce put into production process
Capital
man-made resources used to make another good/service
Enterprise
the people who risk their money to start the business