Scarcity And Choice Flashcards
What is economics
E i t s o h p, b a g w h L r
Economics is the study of how
people, businesses and
governments who have limited
resources
EXAMPLE money make choices and decisions to
meet their needs and wants.
What is economic resources
E r a t f u t p a d g, s a w
Economic resources are the
factors (things) used to produce
and distribute goods, services and
wealth.
What is a scarce resource
Limited resources
Example: money
What is a rational choice
i u t s-i t m c t w p t w t g b
individuals use their self-interests to make choices that will provide them with the greatest benefit
What does factors of production mean
T f o p a t e r n t p g a s
The Factors of Production are the economic resources needed to produce goods
and services.
What are the 4 factors of production
Land
Labour
Capital
enterprise
Describe land
A p b n a u t p g a s
Anything provided by nature and used to produce goods and services.
Example of land
> Seas, rivers, fields, mines, forests, climate
› Non-renewable resources are limited, e.g. oil, coal
› Renewable resources include solar power, wind energy, water
Reward of land
Rent
Describe labour
T p i i p a g o s
The people involved in producing a good or service.
Example of labour
Carpenters, farmers, factory workers, game developers, teachers, electricians
Reward for labour
Wages
Describe capital
P i m b p a u i t p o g o s
Physical items made by people and used in the production of goods or services.
Example of capital
B, m, v, c
Buildings, machinery, vehicles, computers
Reward for capital
Interest
