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22 Cards in this Set
- Front
- Back
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Economics |
The social science concerned with the way society chooses to employ scarce resources which have alternate uses to produce goods and services for present and future consumption |
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Needs |
Physiological, personal or socio-economic requirements necessary to function and live.u |
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Wants |
Goods or services we desire to possess or do. |
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Goods |
a physical commodity that can be utilised to satisfy human wants but is scarce, so human effort is required to obtain it. |
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Services |
Intangible commodities that satisfy human needs and wants. Often an activity. |
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Economic System |
A system of production and distribution of goods and services as well as the allocation of resources within a society. It includes the interactions of many sectors including firms, government, finance as well as consumers. |
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Political System |
A system of politics and government that make decisions on behalf of the people. |
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Resources |
Anything that can be used in the production process i.e.to make/provide other goods and services. |
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Land |
All ‘God’ given resources which contribute to the production process |
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Labour |
Human physical and mental ability and effort which contributes to the production process. |
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Capital |
The human made means of production. |
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Enterprise |
The ability to successfully combine land, labour and capital. |
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Scarcity |
The resources society needs to produce goods and services to meet peoples’ needs and wants are limited. |
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Opportunity Cost |
The benefits you could have received by taking a alternative action. A good or service given up (or forgone) in order to consume another good or service of equal monetary |
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Economic Problem |
A theory that scarcity exists in the sense that only finite and insufficient resources are available to satisfy the needs and desires of all human beings |
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Supply |
Quantity of goods and services firms are willing to produce at a given price. |
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Demand |
Quantity of goods and services consumers are willing to buy at a given price |
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Equilibrium Price |
Quantity demanded equals the quantity supplied in any exchange between consumers and producers |
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Price Mechanism |
The process by which prices rise and fall as a result of changes in supply and demand. |
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Law of Supply |
Producers or firms are more willing to sell goods and services at a higher price |
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Law of Demand |
Consumers are more willing to buy goods and services at the lowest possible price |
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Production Possibilities Frontier |
Economic model which shows the trade-off or opportunity cost involved when increasing production of a good or service. |
