Unit 1 Vocabularies Flashcards
1.1: Needs
Goods or services that are essential for living
e.g. water, food, clothes…etc
1.1: Wants
Non-essential goods and services that improve quality of life.
e.g. luxury items, and PS5 games..etc
1.1: Scarcity
The limited availability of resources relative to the unlimited wants of people.
1.1: Opportunity Cost
The next best alternative forgone when making a choice (give up something)
1.1: Specialization
When individuals, businesses, or nations focus on producing a narrow range of goods or services.
e.g. Macdonald’s a worldwide market so it’s not a specialization.
But most people don’t know Flowerknows (China cosmetic), which Flowerknows considers to be a specialization/narrow range or small market
1.1: Business Activity
The process of combining resources to produce goods and services to satisfy human needs and wants.
1.1: Added value
The differences in the selling price of a product and the cost of the raw materials used to produce it.
For example:
10$ milk+ 10$ wheat+ 10$ egg+ 10$ sugar= 40$ cake
1.2: Primary Sector
Industries involved in the extraction of natural resources, such as farming, fishing, or mining
1.2: Secondary Sector
Industries involved in manufacturing and construction, such as factories producing cars or furniture.
1.2: Tertiary Sector
Industries provide services to consumers and businesses, such as retail, banking, and healthcare.
1.2: Public Sector
The part of the economy is controlled bythe government, such as schools or hospitals.
1.2: Private Sector
The part of the economy operated by private individuals or companies
1.2: Mixed Economy
An economy where both private and public sectors operates side by side.
1.2: De-industrialisation
The decline in the importance of the secondary sector in a country’s economy, often due to growth in the tertiary sector.
1.3: Entrepreneurship
The process of identifying business opportunities, taking risks, and organizing resources to start and run a business.
