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13 Cards in this Set
- Front
- Back
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Economics
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Is the study of how relatively scarce resources are allocated to maximise the satisfaction of society needs and wants.
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Needs
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Something that is necessary to survive
e.g. Water, Food, Shelter |
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Wants
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Extras that make life more enjoyable
e.g. TV, Phone, Games |
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Factors of Production
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Land, Labour and Capital are refereed to as Productive resources.
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Land/ Natural Resources
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These are the gifts of the nature. They are natural resources such as Water, Land, Air.
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Labour
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Involves Mental and Physical efforts by Humans. e.g. Plumber, Accountant, Doctor.
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Capital
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These are man made implements (tools) that assist us to produce other valuable goods or services.
e.g. Axe, PC, Truck , Phone |
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Production
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Production is any activity directed towards these satisfaction of consumers wants through exchange
or Production is the process whereby land and capital are combined with labour to produce goods and services. |
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Opportunity Cost
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Because we have limited Resources and Unlimited wants and needs, we need to make choices. The opportunity cost is the next best alternative we miss out on as a result of that choice.
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Durable Goods
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They have lasting quality or can be used many times
e.g. Cars, House, Chair, PC |
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Non-Durable Goods
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These are goods that can only be used once or used up in a short period of time.
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Goods
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These are tangible items that are in 2 types.
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Services
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Non-tangible items and are used mostly once.
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