The Economy: Goods and Services: Topic 3 Flashcards
What do businesses produce once they have studied people’s needs and wants?
They produce goods and services to satisfy people’s needs and wants.
What are goods?
Goods are things we can see, feel and touch.
What are services?
Services are provided to fulfil a need.
What are consumer goods?
Consumer goods are products that are directly involved in satisfying consumers’ needs and wants. Some of these goods will last a long time - durable goods - while others will not - non-durable goods.
What are capital goods?
Capital goods are goods that are used to produce other goods.
What are semi-finished goods?
Semi-finished goods are goods that are used to manufacture other goods.
What is a personal service?
A personal service is a service aimed at the final consumer and are often carried out by professionals.
What is a commercial service?
A commercial service is a activity involved in getting goods and services to the consumer; moving people, goods or information from one place to another.
What is a producer?
A producer is a business/people who make/produce, grow/supply goods for sale which will satisfy the needs of consumers.
What is a consumer?
A consumer is a person/people who purchase and use goods/services to satisfy their needs.
What is a household?
A household is a group of people who purchase and use goods/services and who live in the residence. One person’s spending becomes another person’s income.
What happens if consumers are not willing to spend their money?
Businesses will have less income.
What do households provide?
Households provide labour, land, capital/ management skills, and they pay businesses for goods and services. Businesses, in turn, pay salaries/wages, rent, interest/profits and provide goods and services.
Households are both _______ and _______.
Producers.
Consumers.
When does a healthy environment have a balance?
A healthy environment has a balance when the consumption of natural resources and production are equal.
