Economic processes Flashcards
What is the economic cycle?
Production - Exchange - Consumption
What is the aim of economic activity?
To satisfy human needs and wants.
What is production?
The making of goods and services that consumers use to satisfy needs and wants
What are Producers?
The buisnesses that make goods and services
What is consumption?
The use of goods and services to satisfy peoples needs and wants.
What is exchange?
Occurs when people trade money for goods and services they need and want
What is the price?
The value of a product.
What is a market?
Any place where buyer and seller exchange goods and services.
What is primary production?
Extraction phase of products.
What is secondary production?
Turns raw materials into finished goods
What is tertiary production?
Service sector
What is capital-intensive production?
Requires a great deal of capital and relatively few workers.
What is Labour-intensive production?
Uses less capital and more workers.
