Introduction Flashcards
What is a business?
A business can be described as all the activities concerned with the production and distribution of goods and services to satisfy the needs and wants of consumers to make a profit.
What are some other terms for ‘business’?
- Enterprise
- Organization
What is the basic economic problem?
There are unlimited wants and needs while there are limited or scarce resources to satisfy them. Therefore each society has to make choices in order to make the best use of its limited resources.
Define the term ‘scarcity.’
When something is limited or short in supply.
What are the 3 basic economic questions?
What to produce?
How to produce?
For whom to produce for?
What is direct production?
producing for oneself and family.
Define surplus production.
The act of producing more goods than required.
What was the earliest form of trade?
The Barter system
Why was the barter system used?
The barter system was used to dispose of any surplus and obtain a larger variety of goods.
Define the term ‘barter’
Barter is described as the exchange of goods and/or services for other goods and/or services without the use of money.
