Definitions simple terms Flashcards
Economics
the study of how society uses its limited resources
scarcity
the demand for a good or service is greater than the availability of the good or service
the economic problem
the problem of making choices that occurs because of the scarcity of resources
needs
things humans need to survive like food, water, shelter
wants
things that are unreasonable like expensive cars, or holidays, tvs
natural resources
a area of the earth’s terrestrial surface, encompassing all attributes of the biosphere immediately above or below its surface
labour
a force of production that refers to the work people do to produce goods and services.
capital
the physical or financial resources used to produce value in an economy
enterpise
an organisational unit producing goods or services which has a certain degree of autonomy in decision-making
goods
items that satisfy human wants, provide utility or usefulness, and are scarce (have limited availability).
price mechanism
the system where the forces of demand and supply determine the prices of commodities and the changes therein
explaonlaw of demand
when the price is high the wantity iis low when the qantity is low the price is high
