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25 Cards in this Set
- Front
- Back
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Need |
A good essential for living |
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Want |
Unlimited, a good or service which people would like to have, not essential for living |
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Economic problem |
Limited resources exist to satisfy unlimited wants |
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Factors of production |
Resources needed to produce goods or services, CELL |
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Scarcity |
Lack of sufficient products to fulfil the total wants |
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Opportunity cost |
The next best alternative given up by choosing another item |
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Specialization |
Occurs when people and businesses concentrate on what they’re best at |
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Division of labour |
The production of product is split up into different tasks and each worker takes one of these tasks |
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Business |
Combine factors of production to make products to satisfy people’s wants |
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Added value |
Difference between selling price and the cost brought to materials |
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Primary sector |
Uses natural resources of earth to produce raw materials used by other businesses |
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Secondary sector |
Manufactures goods using raw materials |
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Tertiary sector |
Provides services to consumers and other sectors |
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De-industrialization |
Decline in the importance of secondary, manufacturing sector of industry |
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Capital |
Money invested into a business by the owners |
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Entrepreneur |
Person who organizes, operates, takes risks for a new business venture |
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Business plan |
A document containing business objectives and important details about operations, finance, owners of new businesses |
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Capital employed |
Total value of capital used in a business |
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Internal growth |
Occurs when a business expands its existing operations |
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Internal growth |
Occurs when a business expands its existing operations |
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External growth |
Business takes over or merges with another business |
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Internal growth |
Occurs when a business expands its existing operations |
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External growth |
Business takes over or merges with another business |
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Merger |
Two owners of two businesses agree to join their firms together to make one business |
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Take over(acquisition) |
One business buys out the owners of another business which then becomes part of “predator” business |
