HASS Economics Flashcards
What are needs used for?
Needs are needed for life
What are wants?
Wants are unlimited.
What is an economic problem?
Unlimited wants but limited resources.
What is scarcity?
The more rare things are, the more they cost.
What is an economic problem?
An imbalance.
What are some scarce items?
Gold, Diamonds and Oils.
Why is scarcity considered a problem?
Due to limited resources to meet their demands.
What does each economic choice we make have?
- Benefit
- Opportunity cost
What is opportunity cost?
The missed opportunity or what you gave up for making the choice or purpose.
What are the four factors of production?
Capital, Entrepreneurship, Natural Resources and Labour
What are capital resources?
Tools
What is entrepreneurship?
Business skills
What is labour?
Human effort
What are Natural resources?
Raw materials
List 3 capital resources
buckets, gloves and shovels
List 3 business skills (Entrepreneurship)
hire, fire and pay/wages
List 3 natural resources
food scraps, wood and animals
List 3 examples of human effort (labor)
Truck driving, extracting oil or sorting waste
What is the most convenient way to make money?
Profit
What is profit?
the money earned after all expenses are made
How do you gain a profit?
If you sell something for a higher price than how much you bought it for.
What is a loss?
When you lose money after selling it for a less amount of money.
What technique is best for businesses?
Productivity and specialisation
What is productivity?
The amount of goods or services workers can produce in a period of time.
Why is productivity important?
The more goods and services and less labour required make cheaper goods and services to make which is likely to make profits.
What is specialisation?
Allows a business to focus its attention on what it doe best and be more productive.
