Economics Flashcards
What is a Consumer and why are they important?
A consumer is a person who purchases goods or services. Without consumers producers would lack motivation to sell.
What is a business and why are they important?
a person’s regular occupation, profession, or trade. Businesses are the main example of producers. Their aim is to make the most profit for the least expense and satisfy customers.
What is the government and why are they important?
The governing body of a nation, state, or community. To set the rules for operation and balance the needs of the consumers and producers
What are Natural Resources (Land)?
Natural Resources are materials or substances occurring in nature.
What are Human Resources (Labour)?
The people who make up the workforce of an organization, business sector or economy.
What are Manufactured Resources (Capital)?
Products that have been made from a raw material, especially a large-scale operation using machinery. what
What are Entreneurship Resources?
Someone who combines the other three types to make profit. Example: Business owner.
What are needs?
Needs are things that are necessary to living day-to-day life such as food, water, shelter and clothes
What are wants?
wants are things that we desire but aren’t a necessity such as headphones and computers.
What is the labour force and why are they important?
The labour force are people of working age who have the ability to work. The labour force is important because a country relies on them to produce goods and services.
What is Relative Scarcity?
Relative scarcity means that we do not have enough resources to satisfy all our wants and needs.
What is opportunity cost? Give an example?
the loss of other alternatives when one alternative is chosen. For example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.
