Main Economic groups and factors of production + The basic economic problem Flashcards
What is a consumer?
A person or organization that directly uses a good or service.
What are goods?
Something you can purchase like shoes. A tangible product like something you can touch.
What is the government?
They make and enforce rules within the country they support. Some of these rules will directly affect consumers and producers.
What are services?
An intangible product, a product that cannot be seen or touched. Like a car wash, hairdressers, nail clippers, or barbers.
What is production?
The total output of goods and services produced by a firm or industry in a time period.
How are Consumers and producers related?
The consumers pay for the goods and services. Firms employ consumers and provide wages. These wages will pay for goods and services.
How are the Government and producers related?
The government may buy goods and services from producers. Government sets producers and tax rates. It may subside the producers/ industries it wants to encourage.
How are the Government and consumers related?
Government taxes consumers and provides services. Government sets and enforces laws on how society should function and provide welfare.
What are the factors of production (hint: use the acronym cell)
C apital
E nterprise
L and
L abour
What does Land refer to in FOP’s?
State examples:
Land refers to the natural resources of an economy
Eg Farmland, mineral deposits, oil, coal etc..
What doe Labour refer to in FOP’s?
State examples:
Labour refers to the human resources of an economy in terms of physical and mental labour
Mental labour: doctor, teacher
Physical labour: Builder, Construction worker
What does Labour depend on (what can change it?)?
Labour depends on the size of the population, the impact of migration and the working age within a country. It is also affected by the quality of labour, so the extent of education
What does Capital refer to in FOP’s?
State examples:
Capital refers to the human-made aids of production It includes artificial resources that are inputs used to produce more goods and services.
Examples include machinery tools, factory, buildings, transport such as freight lorries, and items of technology used during the production process.
What does Enterprise refer to in FOP’s?
State an example:
Enterprise in when the other factors of production are organised to make goods and services. (Could also be the risk/idea into gathering all the other fop’s to create the final goods and services.
Examples could be the start of Facebook/ the risks involved in making it
What is the basic economic problem?
How to best use limited resources to satisfy the unlimited wants of people
What are scarce resources?
Scarce resources are where there are fewer things to make goods and services than are desired. (Limited, finite and insufficient)
What are unlimited wants?
Unlimited wants (or infinite wants) mean the desire for anything a consumer would like, whether or not they have the resources to purchase it. (The infinite desire for something)
Is a good a tangible or intangible good?
Tangible, can be touched
Is a service a tangible or intangible good?
Intangible good, can’t be physically touched
What is opportunity cost?
Write out one example of opportunity cost during your trip to school:
Opportunity cost is something that is given up when making a decision on the use of scarce resources.
What is economic sustainability?
Economic sustainability is the best use of resources in order to creates responsible development or growth, now and into the future
What is the definition of the primary sector?
Where the extraction of raw materials takes place
What is the definition of the secondary sector?
Is the manufacturing of goods and services by the resources extracted from the primary sector
What is social sustainability and what are the factors?
Social sustainability is the impact of development or growth that promotes an improvement in quality of life for all, now and into the future.
- Health and wellbeing
- Air pollution
- Living standards
What is an economic choice?
An economic choice is an option for the use of selected scarce materials
What is environmental sustainability?
Environmental sustainability is the impact of development or growth where the effect on the environment in small and possible to manage, now and into the future.
(Impact on renewable vs non-renewable)
