EMS Test Term 1 Flashcards
03 March 2025
define land in an economic sense
refers to ground and all it’s natural resources
Commercial services
activities involving getting goods to the consumer, eg. bankers
Define personal services
Between individuals
define Capital goods
goods made for other businesses, like machinery
define complementary
things used together
define Semi- finished goods
goods used to manufacture other goods. Eg. steel
define Capital
Money that businesses invest to start a company
What is the difference between a need and a want
A need (Primary need) is something we can’t do without whereas a want (Secondary need) is something we don’t really need.
What 3 categories can needs and wants be divided into?
Natural n+w (Common at all times)
essential n+w (MUST be satisfied, can’t live without
Luxury wants (Not essential, can live without)
give an example of when needs and wants can’t be met
in war zones, food, water, lack of comfort and housing are all accurate things that could happen.
Talk about how different people have different needs
Need for security, spiritual needs, cultural needs, needs for individuals and their families, needs of a country, needs in a community.
name the needs in a community
Proper roads, municipal services, education, mutual respect, fire stations/ police stations, health care, housing, animal control
from bottom to top, name the Maslow’s Hierachy And needs pyramid
Physiological needs, safety needs, social needs, esteem needs, self actualisation needs
Who designed the Pyramid?
Abraham Maslow, an American Professor
What is the basic economic problem?
Limited resources, unlimited wants . How do you allocate scare resources to satisfy unlimited wants
What are the characteristics of Needs and Wants
- They’re unlimited
- They have limited intensity/ duration
3.Compete with each other (supplementary) - They’re Complementary
- Wants become habits
- They differ with time
- differ from person to person
- differ from place to place
give an example for these needs
1. Self- actualisation needs
2. Esteem Needs
3. Social Needs
4. Safety and security needs
5. Physiological needs
- self- development, creativity
- confidence, respect, achievement, comfort
- family, love, friendship
- safety of your body, health, property
- food, water, oxygen
Difference between goods and services?
You can see, feel and touch goods
you can’t see services, instead it fulfils a need
types of goods?
- Consumer goods- directly involved. Eg- Pen
- capital goods- goods used to produce other goods. Eg- Machinery
- Semi- finished goods- goods used to make other goods. Eg- steel
Types of services?
- Personal sevices- AIMED at the final consumer - eg. doctors- medical services
- Commercial services- INVOLVED in getting it to the consumer- eg. banker or cashier
What’s the difference between a producer and a consumer?
Producers are businesses/ people who make/produce goods for sale which satisfy the needs of the consumer (those who purchase+ use goods to satisfy their needs.
Talk to me about Households
- A household is a group of people who buy goods and services and live in residence. One persons spending becomes another’s income. If consumers don’t spend, businesses will have less income. everyone depends on each other. The government depends on tax, which is used to build roads and create jobs.
what do households provide?
Labor, land, capital, management skill. They pay businesses for g+s in return, businesses pay salaries or wages and provide g+s
Are Households consumers or producers?
They’re both. They provide G+S and receive wages, rent, consumer expenditure
How can we improve the environment
- Replacing Natural resources once they’re used (replanting trees)
- We should create more g+s without natural services.
- Create jobs that produces g+s while benefiting the environment.
- Place waste in recycling containers
- Re-use waste
- Purchase other products
