Chapters 30-33 Flashcards
Define the term economics
Social science studies how people with limited resources make choices in order to satisfy their needs and wants. These people include individuals, organisations and governments.
Define the term economic resources
Factors are imposed used to produce and distribute goods/services and wealth
Define the term need
Is there something we can’t live without, plays a very important part in our daily lives example food and clothing
Define the term want
Something we would really like to have, but it’s not essential for example a holiday
What is meant by the term rationale choice
It is one were expected gains outway the expected losses
Define the term utility
Choosing between two or more alternatives, choose one provides us with the greatest plus most benefits
Define the term scarcity
Being in short supply of or having a shortage
Define the term supply
The quantity of resources that is available at a given time or price
Define the term market
Is the place where buyers and sellers connected with each other in order to trade or exchange goods and services.
Define the term demand
Quantity of a product that buyers are willing to purchase at a given price
Define the term effective demand
Willingness to buy,backed up by an ability to pay real or actual demand.eg might say your willing to buy the latest iPhone but you don’t have the money to buy it. You don’t have an effective demand for that product.
Name and explain 3 factors that can effect supply
• Environmental conditions
Weather can impact the supply of crops available. For example, a very wet summer may reduce the wheat harvest
2 Production and development costs
Producers of goods and services incur costs. These costs include product development, manufacturing costs, wages, raw materials and transport costs.
3 Technology
Technology helps businesses to be more efficient and productive. As a result of the increased use of technology (for example, robotics), production costs may be reduced.
What is a supply curve
A supply curve is a graph that illustrates the quantity of a product that a seller is willing and able to supply at a series of price points.
What is a complementary good
A complementary good is a product that is used with another product. In some cases consumers need to buy both products, for example printers and ink cartridges.
Define the term price
Price refers to the amount of money expected or paid for a product or service. For most normal goods and services:
