unit 1 Flashcards
Anna V
central problem in the study of ecnomics
how to allocate scarce resources
goods
physical goods - tangible
services
non-physical – intangible
produce activity (labour)
done by the labour force
factors of production
what is used in the production process to produce output
land
natural resources
labour
Human Resources / employees
capital
man made equipment
enterprise
combines land, labour and equipment
depletable source
non-renewable source
free goods
resources that are not limited in supply e.g.: ideas and inventions
economic goods
limited in supply such as cars, computers or land
consumer durables
can be used multiple times
consumer non-durables
are used up quickly
consumer services
non-physical goods that provide service (services)
capital goods
goods which do not satisfy immediate human needs but rather help production of others
enterpreneur
people who organise a business
a firm
an organisation that owns the factors of production
factor rewards
the payments the factors require in order to participate in productive activity
wages
people will supply their labour to firms in return for payments called wages
revenue
income
PPC: inefficient
not enough
PPC: unattainable
going past the curve
PPC: economic growth
economy uses this capacity to produce more goods than it did previously
