3.1.1.2 nature and purpose of economic activity Flashcards
1
Q
what is the main purpose
A
the production of goods and services to satisfy society’s needs and wants
2
Q
what is economic welfare
A
the general wellbeing of a individuals in a society
3
Q
what are the key economic decisions
A
what to produce, how to produce and who will benefit from the goods produced
4
Q
why do the government need too be careful in deciding what to produce
A
because there is scarce amount of resources and they must decide what will benefit society most (oppurtunity cost)
5
Q
what do firms aim to do when producing products
A
minimise costs and maximise profits
6
Q
need
A
a good/service which is essential to survive
6
Q
need
A
a good/service which is essential to survive
7
Q
want
A
a good/ service which isnt neccesary for survival but is desired
