Unit 1 Eco Chapter 01 Glossary

Question 0

Resources

Answer 0

Things/Materials that are used to produce goods and services

Question 1

Wants

Answer 1

Basic goods and services that are not necessary for survival but can help and/or benefit.

Question 2

Opportunity Cost

Answer 2

The benefit foregone (or sacrificed) when a choice is made
or
The value of the next best alternative foregone when a choice is made.

Question 3

Productive/technical efficiency

Answer 3

Situation where a nation’s resources are producing the maximum amount possible and at the lowest cost

Question 4

Allocative efficiency

Answer 4

Where resources need to be used in the economy that provide the maximum possible benefits for consumers and the nation

Question 5

Consumer sovereignty

Answer 5

Buyers/consumers primarily determine what will be produced in Australia

Question 6

Public sector

Answer 6

Made up of all levels of the Government - commonwealth, state and local governments.

Question 7

Private sector

Answer 7

Made up of the household, business and not-for-profit sectors.

Question 8

Microeconomics

Answer 8

An examination of the smaller parts that makes up the entire economy

Question 9

Macroeconomics

Answer 9

An examination of aspects or performance of the entire economy

Question 10

Economic activity

Answer 10

Activities that take place in order to make our lives more enjoyable and/or activity designed to help us achieve our goals to complete daily chores

Question 11

Economy

Answer 11

Any place or region around the world where production of goods and services takes place, expenditure and income is occurred due to selling and buying of goods and services.

Question 12

Production

Answer 12

The process of making a good or services.

Question 13

Income

Answer 13

Money given to those involved in the production of goods and services such as wages.

Question 14

Expenditure

Answer 14

The spending of income on goods and services

Question 15

Economic agents

Answer 15

Any individual, group or body required to make decisions when there are numerous alternative options available.

Question 16

Producers

Answer 16

The people and businesses that need to decide the best way to combine resources in order to make the most profit

Question 17

Consumers

Answer 17

People that decide the best way to use their skills in order to maximize their income satisfaction

Question 18

Needs

Answer 18

Basic goods and services that are necessary for our survival such as food, clothing and shelter.

Question 19

Land/natural resources

Answer 19

Resources that occur in nature to generate more elaborate products. Eg: water, forests, minerals, animals, fruits and vegetables.

Question 20

Labour

Answer 20

Mental and physical effort by humans in the production process.
Eg: workers employed by business or governments

Question 21

Capital

Answer 21

Resources that have been made by combining labour and natural resource to create a more optics red input in the production process
Eg: machinery, factories, equipment

.

Question 22

Entrepreneurship

Answer 22

Skills of individuals who combine our resources to produce goods and services.
Eg: Bill Gates, James Packer, business owners…etc

Question 23

Relative scarcity

Answer 23

When there is not enough resources to satisfy all our needs and wants.

Question 24

Economics

Answer 24

Study of individuals, businesses, governments and other groups deciding about how our scares resources are to be allocated

Question 25

Resource allocation

Answer 25

Resources need to be used in the economy in combinations that provide the maximum possible benefits for consumers and the nation.