Unit 1 Flashcards
Goods used to produce other goods, such as tools, equipment and machinary
Capital Goods
A system of exchange which involves the swapping of goods between individuals
Barter System
Individuals who use or consume goods and services to satisfy their needs and wants
Consumers
Goods produced for general use by the public. They can be durable and non-durable.
Consumer Goods
Individuals, or other businesses, that buy goods and services supplied by businesses.
Customers
The decline in manufacturing
De-industrialisation
Specialization in specific tasks or skills by individuals
Division of labour
Resources used by businesses to produce goods and service
Factors of production
Anywhere that buyers and sellers communicate to exchange goods and services
Markets
Any substance which is generally accepted as a means of exchange
Money
Human requirements which must be satisfied for survival
Needs
The benefit of the next best option foregone when making a choice between a number of alternatives
Opportunity Cost
Activities which involve the extraction of raw materials from the earth and the growing food
Primary Production
Activities such as manufacturing which transform raw materials into finished goods
Secondary Production
In business, the production of a limited range of goods
Specialization
Parts that work together to achieve an objective; a system can be a communications system, a business, an economic or a political system
System
Activities which involve the provision of services
Tertiary Production
Human desires which are unlimited
Wants
