Economic Activities Flashcards
Goods:
Goods are products. There are two types of goods, Consumer goods and intermediate goods. Consumer goods are consumed straight away some examples of consumer goods are, shoes, clothing and furniture. While Intermediate goods are used to produce other goods such as a car engine or sugar, these goods help produce the final product.
Intermediate goods
type of goods that are produced to create a final product. They are needed to produce other goods. Some examples of intermediate goods are steel, wood or even a printing press. These goods all contribute to the production of a final product.
Final goods
Final goods, also known as consumer goods are produced for immediate consumption. Example of final goods are clothing or shoes.
Services:
Services are systems that supply public need. Such as a haircut, dental work, or the transportation of goods. Services are provided by people for example, a doctor, a dentist or even a truck driver
Primary sector
The primary sector consists of economic activities that provide people with food and raw materials used in the manufacturing done by other sectors. The primary sector includes economic activities related to natural resources such as fishing, agriculture, mining and forestry
Secondary sector
The secondary industry consists of industries, energy and the construction industries. The secondary sector transforms raw materials into manufactured or consumer products.
Tertiary Sector:
The tertiary sector consists of all economic activities which don’t produce a physical product as well a the police and fire service. These activities uses workers skills and knowledge to provide services such as education, healthcare, marketing and retail.
Market (two definitions)
the first is a gathering of people to purchase and sell products, and the second is a place where commercial transactions take place.
Company:
A company is a type of commercial business. The purpose of a company is to envision a great idea and be profitable in achieving it.
Multinational company:
A multinational company is a company that is located in more than one country.
Profit
A profit is money made by a business after its costs are paid
Economic agents
carry out economic activities. Such as people, Businesses, and the public sector. Two types of economic agents, consumers and producers.
Explain the role of the state as an economic agent
The states role as an economic agent is to control production, distribution, and consumption of products.
What is an economic system? Name three types.
An economic system is the various decisions made by a country about how to organize its economy and how to manage its resources. There are three types of economic systems, the planned/command economy-mercantilism, the free market/capitalist economy¬-capitalism and the mixed economy system-communism.
Explain the law of supply and demand. Give an example
The law of supply and demand determines the pricing of services and goods. The supply is amount of products the company is able to provide and the demand is the number of products or services that consumers will buy. If the supply is high but the demand is low and then the prices decrease and vice versa. An example of the law of supply and demand is if a company sets the price of its product at 9 euros and no one wants the product so the price is lowered to 8 euros. The demand for the product increases at the new lower price point and the company begins to make money and a profit
