Commerce - unit 1 Flashcards
What is the universal economic problem? How is it defined?
scarcity of resources or limited resources for unlimited human wants and needs
List our limited means
time, skills, and money
List 4 limited resources
land, labor, capital, energy
Define natural resources
raw materials found in the environment that are used to produce goods and services
give 3 examples of natural resources
- water
- sunlight
- wind
What is renewable resource and give 3 examples
can be replaced naturally e.g sunlight, wind, and water
What is non-renewable resource and give 3 examples
limited and can’t be replaced quickly, e.g coal, oil, and gas
Define human resources and give 3 examples of these
people who work to produce goods and services, e.g teachers, doctors, skilled workers
Define capital resources and give 3 examples of these
are man-made tools, equipment, and machinery used to produce goods and services, e.g computers, factories, trucks
What is an entrepreneur? What are their aims?
an individual who starts and operates a business, their aims are to make a profit, innovate, and grow their business while meeting market needs
Explain scarcity
scarcity leads to making a choice, which leads to an opportunity cost
define opportunity cost
the value of the next best alternative.
Define free goods and give 3 examples of each
resources that are available without cost or scarcity, e.g air, sunlight, and water
Define economic goods and give 3 examples of each
resources that are scarce and have a price, e.g food, clothing, and cars
What are values?
beliefs or principles that guide an individual’s behavior and decisions
Give 4 examples of the types of values people may have
- honesty
- kindness
- hard work
- respect
What FACTORS affect values?
culture, education, and upbringing etc
How do values affect consumer decisions?
It influences their preferences
What is a need? Give 3 examples of a need
something essential for survival or basic well-being, e.g food, water, and shelter
What is a want? give 3 examples of a want
something that is desired but not essential for survival, e.g luxury cars, designer clothes, vacation
Define the term producer
a producer is someone or something that makes goods or provides services
Define the term consumer
A consumer is an individual that purchases and uses goods or services.
What is a capital good?
A capital good is a man-made item, such as machinery or equipment, used to produce other goods and services
What is a consumer good?
A consumer good is a product that is purchased and used by individuals for personal use, rather than for further production
What is capital intensive ?
Production process relying more on machinery and equipment then human workers
What is labour intenseive?
Production process which relies more on human workers/labour then machinery and equipment
What are the 4 sectors and their meanings?
Primary - raw materials
Secondary - making goods
Tertiary - service sector
Quaternary - advertising / tech companies
Give an example of the 4 sectors
primary - wheat farm
secondary - bread maker
tertiary - supermarket
quaternary - marketing on instagram
What is a good?
Products provided for consumers that have a physical exsistence
What is a service?
An act provided for consumers
