Economics Flashcards
What is a consumer?
A person who purchases goods and services for personal use
What is a producer?
A business which creates and supplies goods and services
What is the role of the government?
To set the rules for operation and balance the needs of the consumers and producers
What is a land resource?
A natural resource, materials or substances occurring in nature which can be exploited for economic gain
What is a labour resource?
A human resource, the people who make up the workforce of a business or organisation
What is a capital resource?
A manufactured resource, products made from a raw material by hand or machine
What is gross domestic product?
The total dollar value of all goods and services produced by a country, referred to as size of the economy?
Why is access to resources important for a country?
Resources can be used to created goods and services, which can be used for trade and building a stronger economy
What is a country’s workforce?
The total number of people who are physically able to do a job and are available for work
Why is a country’s workforce important?
They are relied upon to produce goods and services
What is a need?
Something that is necessary to live a healthy life, such as food, water or shelter
What is a want?
A desire for something, usually to satisfy a need, such as toys, games or designer clothes
What are wants that people desire?
Unlimited, because people are greedy and always want more, leading to relative scarcity
What is relative scarcity?
The fact that we do not have enough resources to satisfy all our needs and wants
What is opportunity cost?
The loss of one alternative when another alternative is chosen
What is an example of opportunity cost?
When you spend time and money watching a movie, you cannot spend that time watching footy and that money on dinner
What is production possibility curve?
A graph that measures the maximum output of two goods using a fixed amount of input
How does a consumer win?
By lowering the prices of goods and services a producer is providing
How does a producer win?
By maximising its profits for owners and stakeholders
How do consumers and producers rely on each other?
Consumers rely on producers to supply goods and services and producers rely on consumers to buy products so they can make a profit
What is primary production?
An industry that extracts raw materials directly from the earth or sea, such as fishing or farming
What is secondary production?
An industry that processes and manufactures products from raw materials, such as food processing and energy production
What is tertiary production?
An industry that provides a service to customers, such as schools and restaurants
What are goods?
Physical objects such as food and clothing
