Economics Flashcards
What are the main economic groups
consumers, producers, government
How do consumers help
they buy and influence products
How do producers help
They supply and sell the products
How does the government help
creates limits and possible demands for businesses
What are the factors of production
C- capital
E- enterprise
L- land
L- labour
What is capital
machinery and human made aids
What is enterprise
Starting up a business
What is land
The natural resources and raw materials
What is labour
The human resources that are available for a business
What is the basic economic problem
The basic economic problem is that there is unlimited wants but limited resources
What is meant by scarce resources
There are fewer supplies to make goods and services than are desired
What is meant by unlimited wants
The desire for anything a consumer would like
What is the difference between a want and a need
A want is unlimited and is not needed for basic survival. Whereas a need is needed to survive.
What is meant by opportunity cost
It is when you give up something when making a decision about the use of scarce resources
What is the difference between a renewable and non-renewable resource
A renewable resource is something that can be reused or made easily whereas a non- renewable resources cannot be replaced once they have been used
