intoduction to economics Flashcards
Factors of production
the resources in an economy that can be used to make good & services
Labour
the factor of production that is concerned with the workforce of an economy in terms of both the physical and mental effort involved in production
Land
the factor of production that is is concerned with the natural resources of an economy e.g farmland
Capital
the factor of production that relates to the human-made aids to production
enterprise
the factor of production that takes a risk in organising the other three factors of production. The individual who takes this risk is known as the entrepeneur
scarce resources
when there is an insufficient amount of something to satisfy all wants
unlimited wants
the infinite desire for something
need
something a consumer has to survive
want
something a consumer would like to have is not essential to survive
economic problem
how to best use limited resources to satisfy the unlimited wants of people
opportunity cost
the next best alternative given up when making a choice
economic cost
an option for the use of selected scarce resources
economic sustainability
the best use of resources in order to create responsible development or growth now and into the future
environmental sustainability
the impact of development or growth where the effect on the environment is small and possible to manage, now and into the future
social sustainability
the impact of development or growth that promotes an improvement in quality of life for all, now and into the future
market
a way of bringing buyers and sellers to buy and sell goods & services
market economy
an economy in which scarce resources are allocated by the market forces of supply and demand
primary sector
the direct use of natural resources such as the extraction of basic materials and goods from land and sea
secondary sector
all activities in a an economy that are concerned with either manufacturing or construction
tertiary sector
all activities in an economy that involves the idea of a service
factor market
market in which the services of the factors of production are bought and sold
product market
market in which final good and services are offered to consumers, businesses and public sector
