Economics Flashcards
Consumer sovereignty
The consumer is king they dictate what you can sell. They decide in were recourses are allocated in a market economy
Opportunity cost
The lost alternative use to which the economic recourses could have been allocated
Goods and services
A good is something that is tangible and a service is when someone is paid to do something for you
Markets
A situation where potential buyers are in contact with potential sellers and there is a mean of exchange
Scarcity
The problem of limited recourses being available to satisfy unlimited wants
Economic recourses
The input required by the producer to complete the production process
Types of economic recourses
Land
Labour
Capital
Enterprise
Land
Natural recourses
Labour
The person power available to work in the production process
Capital
The machinery, plant and equipment made by people to assist in the manufacturing of commodities and provision of services
Enterprise
The qualities some individuals posses that make them able to accurately perceive market opportunities and the effectively coordinate the production process
The head of the company, who runs it
Target market
A particular group of consumers at which a product or service is aimed
