question
Microeconomics
answer
The study of the economic choices of a single entity e.g. one household, one business, one industry.
question
Economics
answer
The study of how a society uses its limited resources to satisfy its unlimited wants.
question
Limited Resources
answer
There aren't enough resources to make all the goods and service we need and want.
question
Unlimited Wants
answer
Our wants are never ending.
question
Macroeconomics
answer
The study of an economy as a whole.
question
Good
answer
A tangible object or product we purchase to satisfy a need or want.
question
Service
answer
An intangible product we pay someone else to provide for us.
question
Need
answer
Something required for survival e.g. food, water, clothing, shelter
question
Want
answer
Things we desire but are not necessary for survival.
question
Factors of production
answer
Four types of resources used in the production of goods and services.
question
Land resources
answer
Raw materials found naturally in our environment e.g. water, air, minerals, vegetation, animals, land.
question
Labour resources
answer
Human skill and effort used to produce goods and services e.g. doctors, teachers, truck drivers.
question
Capital resources
answer
Man-made objects that help produce other products e.g. sewing machines, buildings, computers.
question
Enterprise resources
answer
Abilities and vision of entrepreneurs - people who form an idea for a good / service and organise its production.
question
Economic Problem
answer
The problem of having unlimited needs and wants and only a limited quantity of resources to satisfy these.
question
Scarcity
answer
Society has a limited quantity of resources and cannot produce all the goods and services people want.
question
Opportunity Cost
answer
The next best alternative once we have made a choice.
question
Consumer
answer
A person who purchases goods and services for personal use.
question
Producer
answer
An organisation that produces and sells goods and services in an attempt to make a profit.
question
Demand
answer
The quantity of a good or service that a consumer is both willing and able to buy at a particular price and time.
question
Law of Demand
answer
As price rises, quantity demanded falls, and vice versa.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline