Business Definitions 2023 Flashcards
To be the best at business
What is a Need?
A need is something necessary for survival
What is a Collective want?
A collective want is a shared desire or goal among a group of people.
What is an Individual want?
Something that is desired by a particular person
What is a Consumer good?
A Consumer good is a product/service for personal use. E.g. Food, clothing, entertainment.
What is a Capital good?
Something that is used in production such as machinery or buildings. Its something businesses use to make things.
What is a Service?
A service is something someone does that benefits another.
What is a Developing Economy?
A developing economy includes countries that are not performing well in industrialisation, technology, and business trade.
What is a Command Economy?
In a command economy the central government dictates the level of production of goods and controls their distribution and prices.
What is a Modern Market Economy?
This is where people/businesses trade goods/services through markets, based on supply/demand, with little government intervention.
What is a Leakage?
A leakage in business is a loss of funds from the circular flow of income, such as savings, taxes or imports.
What is an Injection?
An injection is a source of funds (e.g. investment, government spending) that enters the circular flow of income.
What is the Household Sector
In the circular flow of income, the household sector is the primary source of consumption expenditure and labour supply.
What is the Production Sector?
The sector that creates goods and services through manufacturing, agriculture, and construction activities.
What is Primary Production?
Primary production is the agricultural activities, aquaculture, fisheries and similar processes resulting in raw food materials.
What is Secondary Production
Secondary production is the manufacturing of goods rather than producing raw materials
What is Tertiary Production
Tertiary production refers to the production of services rather than goods.
What is Quaternary Production
Quaternary production refers to knowledge-based services, such as research, consulting, and information technology.
What is Demand?
The demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time.
What is the Supply?
The supply is the amount of a resource that consumers purchase
What is Surplus/Oversupply
The surplus is the amount of an asset or resource that exceeds the portion that’s actively utilised.
What is Shortage/Undersupply
Shortage is when the quantity demanded exceeds the quantity supplied
Define Equilibrium
Equilibrium is the price where the demand and the supply meet on the price mechanism model.
What is the Economic problem?
Unlimited wants and limited resources or ‘relative scarcity’
Is a Fisherman a Primary, Secondary, Tertiary or Quaternary?
Primary
