Business Studies

Needs - things that are essential to survive: food, clothing, shelter etc..
Wants - things that we want, but CAN survive without: a holiday etc..

But we do not have the resources, so we choose what we use our resources for.
This is known as the ECONOMIC PROBLEM!

Evertime we make a choice, there is a COST.
This is known as OPPORTUNITY COST!

Goods - things that you can touch and see: sunglasses, car etc..
Services - things that you CANNOT touch, but are provided: fireman, window cleaner etc..

There are two types of goods and services:
Consumer goods and services: single use e.g chocolate bar
durable use e.g chair

Producer good and services: single use e.g raw materials
durable use e.g machinery

LAND - natural resources: forests, sea
they will use the