Goods and Services Flashcards
What are free goods?
Goods and services that are abundant - their supply is not limited.
What is the market price of a free good?
Usually zero
Is fresh air a free good?
Usually. But in some circumstances, it is scarce. E.g. a mine shaft or a polluted city.
What is an economic good?
A good that is not free. I.e. it is scarce
What do we call any good that a consumer pays for?
An economic good
What is the main influence on the price of a good?
How scarce it is. E.g. diamonds are less useful than air, but are more expensive.
What are resources?
Things we use to satisfy our needs and wants by producing goods and services
What are the three kinds of resources?
Natural resources - things that occur in nature
Human resources - people’s skill and labour
Human-made resources - tools, machines, motor vehicles, money
What is the most common limited resource?
Money
Give some examples of non-renewable resources
Oil, coal, natural gas
What is produced in the primary sector?
Raw materials
List some examples of activities in the primary sector.
farming, fishing, forestry, mining
Where are primary sector activities conducted?
Rural areas
What is the first layer of the economy?
The Primary Sector
What is the second layer of the economy?
The Secondary Sector
What is produced in the secondary sector?
Goods that people can use.
What does the secondary sector consume to produce goods?
Raw materials and labour
Give some examples of secondary sector businesses.
ship building yards, aeroplane construction plants, car factories, building, engineering
What is the third layer of the economy?
The Tertiary Sector
What is produced in the tertiary sector?
Services
Offer of secondary goods to the general public (i.e. retail services)
Give examples of tertiary sector goods and services.
Education - schools and universities
Health Care - hospitals
Money management - banks and insurance companies
Legal services - law firms, courts
What is the difference between goods and services?
Goods are items you can see and touch. Services are what people do to help you.
In poor countries, which sector dominates production?
The Primary Sector
Sum up the three economic sectors.
Primary-sector businesses use natural resources directly.
Secondary-sector businesses use raw materials to manufacture goods.
Tertiary-sector businesses provide services
In rich countries, which sector dominates production?
The Tertiary Sector
How do businesses decide what goods and services to produce?
They study people’s wants and needs, and produce goods and services to satisfy them.
What do we call goods that directly satisfy consumers’ wants and needs?
Consumer goods
What do we call goods that last for a long time?
Durable goods
What do we call goods that are consumed quickly?
Non-durable goods
What do we call goods that are used to produce other goods - e.g. machinery?
Capital goods
What do we call secondary goods (i.e. not raw materials) that are used to manufacture other goods?
Semi-finished goods
Give an example of a semi-finished good.
Steel = iron + carbon + some other raw materials
What do we call services that are aimed at the final consumer?
Personal services
What do we call activities that get goods and services to the final consumer?
Commercial services
Define a household.
A household is a group of people who live in the same residence and purchase goods and services.
How do households produce goods and services?
They sell their labour in exchange for income.
How does the government depend on businesses and individuals?
They pay tax
What is tax used for (apart from Nkandla)?
To build roads, create jobs, offer education and health services.
Are households consumers or producers?
Both
How do we know that consumers are not using their goods and services efficiently?
There is wastage of goods
What are the disadvantages of waste products?
They make our water, air and land unhealthy and cause pollution
Where is solid waste sent if we don’t recycle it?
landfill sites
How can we reduce the damage caused by waste products?
Re-use waste
Re-cycle materials
Manufacture other products from recyclable materials
What are goods?
Things that we consume
What are services?
Work done for the benefit of others
What is a government agency?
an organisation in government that supplies services or goods to the public
What are entrepreneurs?
people with skills that start their own businesses
What are operating costs?
The costs of running a business
What is a grant?
An amount given to by the government to a household or individual to compensate for adverse circumstances - e.g. a disability or poverty
What is a market share?
The part of the market which buys your goods or services.
