economic terms Flashcards
What is economics?
how resources are produced and distributed to society
What are products?
products are goods
What are services?
services are actions
What products (goods & services) does Australia make and trade (export overseas)?
Iron ore and other ores
Gold
Lead and Diamonds
Why do other countries (economies) produce different goods & services in Australia? Examples?
- the geographical location of countries allows them to produce specific products
-All year round food that Australia doesn’t produce coffee.
What are the 4 factors of production?
Capital, entrepreneurship, Labour, Land
What is capital?
The equipment and machinery used to make and package products. Eg, ovens, baking dish, racks and bakery.
What is entrepreneurship?
The people who come up with the idea for the business or product. Eg, the owner of the company, a recipe for the bread
What is Land?
all the raw materials needed to produce the good or service. examples, flour, yeast, water, salt and electricity.
What is Labour?
The people who work to produce goods and services. Eg, bakers, office staff, shop assistants.
What is a basic economic problem?
scarcity
What is scarcity?
the limited resources available to meet unlimited wants.
What is an opportunity cost?
The next best option that we gave up when we chose the thing we chose
Add-ons:
- When we make a choice, there is a winner (the thing we chose) and a loser (the thing we did not choose).
- Opportunity Costs arise from every decision made!
What is the cost-benefit analysis?
Carefully weighing up the advantages & disadvantages to help you make the best decision.
Material living standards
access to goods, services and income.
