Economics Flashcards
So you don't fail ur test
Define scarcity.
The state of being in short supply; shortage.
Define opportunity cost.
The loss of other alternative when one alternative is chosen.
Define resources.
The ingredients used to make all gods and services.
List the three types of resources.
- Natural
- Labour
- Capital
Define natural resources.
Resources that come from nature, from above or below ground.
Define labour resources.
Intellectual or physical skills of a worker that are needed to make a good or provide a service.
Define capital resources.
Man made resources that are used to produce and transport the goods and services we purchase.
Define globalisation.
The process by which businesses or other organizations develop international influence or start operating on an international scale.
Define the economic system.
A way of organising the production and distribution of goods and services.
Define import.
To bring goods or services into a country from abroad to sale.
Define export.
To send goods or services to another country for sale.
Define trade.
The action of buying and selling goods and services.
Define competitive advantage.
A condition or circumstance that puts a company in a favourable or superior business position.
Define profit.
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Define blended marketing.
The seamless integration of digital marketing into the traditional marketing.
Define corporate social responsibility.
A company’s efforts to improve society in some way.
Define a consumer.
A person who purchases goods and services for personal use.
Define a producer.
A personal, company, or country that makes, grows, or supplies goods or commodities for sale.
Define supply chain.
The sequence of processes involved in the production and distribution of a commodity.
Define a transnational corporation.
Companies that operate in several countries.
Define innovation.
Changing an existing product or process so that it is more effective than ever before.
What is the economic problem?
The unlimited wants of our ever-growing population met with the fact that we have limited resources. This leads to scarcity which leads to having to make a choice for what to produce, how to produce and whom to produce for. These choices are categorized into economic systems.
Define a traditional/subsistence system.
- Producers are self-sufficient, producing enough to survive instead of aiming to make a profit.
- What to produce is based on what’s available.
- How to produce is answered through custom or religion.
- For whom to produce- production is usually shared.
