Economic Activity Flashcards
Explain needs
Economic needs are goods/ services that are necessary to maintain a basic living standard e.g food and shelter
Explain Wants
Wants are goods and services that the consumer would like to have if they have sufficient money e.g luxury car
What is economic activity concerned with?
The production and distribution of goods/services
What is the fundamental economic problem?
The problem of scarcity and how to produce and distribute goods/services using scarce resources
Due to scarcity what are the 3 questions economic activity is faced with?
- Who to produce for
- What to produce
- How to produce
What are the three main groups in economics?
- Consumers
- Producers
- Government
What is a Consumer
An individual that purchases goods
What is a Producer
An individual/firm that makes goods
What is the government?
A public body that collects taxe and spends money
