Economics Flashcards
What is a good?
An item or product that is produced, bought and sold to satisfy a consumers needs or wants
What is a service?
An activity or benefit provided in exchange for money to satisfy the needs or wants of consumers
What is a need?
Something essential for survival or basic wellbeing
What is a want?
Something that is desired but not essential for survival
What is productivity?
The measure of how efficiently resources such as time, labour or materials are used to produce goods or services e.g. a factory producing 500 cars per day
What is a resource?
anything that can satisfy wants or needs and can be used to produce goods and services
What is a renewable resource?
A resource that can be replenished naturally overtime and is sustainable
What is a non renewable resource?
A natural resource that can’t be replenished on a human timescale and it can deplete overtime
What are the two main types of resources?
Cultural and natural
What is a natural resource?
A raw material or substance found in the natural environment that is used by humans
What is a cultural resource?
Physical or intangible elements that have significance to a communities history and are preserved for their cultural value
What is inflation?
When prices go up making things more expensive overtime
What is Gross Domestic Product (GDP)?
The total of all goods and services produced in a country over a specific period of time
What is an example of land production?
Growing crops
What is an example of labour production?
A teacher teaching students
What does scarcity mean?
When there isn’t enough of something to go around because our needs and wants are bigger than what we have
What is allocation?
The distribution of resources based on needs
What is opportunity cost?
What you give up when you choose one option over another
What is supply and demand?
The relationship between how much of a product is available(supply) and how much people want to buy(demand) determines the price in the market
What is the difference between a substitute good and a complementary good?
A substitute good is one that can replace another (samsung and apple) complimentary is one that can be used with the good (apple and airpods)
What are the main two types of goods?
Complimentary and substitute
What is the difference between a customer and a consumer?
A customer is someone who purchases a product or service but may not use that, while a consumer is the person who actually uses or consumes it but may not buy it
What is the law of supply?
As the price of a good or service increases, the quantity supplied by producers also increases, and as the price decreases, the quantity supplied decreases
What is the law of demand?
As the price of a good or service decreases, the quantity demanded by consumers increases, and as the price increases, the quantity demanded decreases
