gg Flashcards
Economics
The way our society organises the use of resources to satisfy people’s needs and wants.
Needs
Basic items such as food, water, air, warmth, shelter and medical care that are essential for survival
Wants
Non-essential items demanded by people in order to make life easier and happier. Unlimited.
Relative Scarcity
Our wants are unlimited but the resources required to fufil them are limited.
Specialisation
Growing or producing goods to sell to other countries e.g: wheat, iron ore.🤥🤪🧐🍄🕶👑
Trade
Buying/swapping your specialised goods for what they have.✨💐🤩💖
Opportunity Cost
What a producer or consumer misses out on by purchasing one item instead of another🤨🧐🤩🤯🤬🤭🤫🤮🧠🧕🧟♂️🧞♂️🧞♀️🧜♂️🧜♀️🧛♂️🧛♀️🧝♂️🧝♀️🧙♀️🧙♂️🧖♂️🧖♀️🧚♀️🧚♂️🤱🧢🧣🧤🦅🥨
Resource
Satisfy people’s needs and wants. 👀👑
Factors of Production
Resources we need for the production of goods and services.
Land (Factors of Production)
The natural resources business use to produce their goods or services.
Labour (Factors of Production)
The employees and their skills that are needed to produce and sell goods or services.
Captial (Factors of Production)
Man-made tools and materials the business needs to produce goods or services.
Enterprises (Factors of Production)
The people who organise and manage the other 3 resources.
Loyal Consumers
Continue to purchase goods and services from the same business over a long period of time. These consumers are very valuable to a business as they account for a large number of sales.
Discount Consumers
Prefer to buy products that represent the best value for money. Often find sale items that have had their price reduced.
