Revision

Goods: tangible products that can be touched and consumed

Services: things other people or businesses do for you

Needs: something neccesary to sustain life

Wants: something chosen to satisfy a need or to make life more enjoyable

Efective demands: demand for a product that is backed up by an ability and willingness to pay for it

Opportunity cost: the cost of one item in terms of the next best alternative that must be foregone

Exchange : the ability to exchange one type of goods or services for another, normally using money as a means of exchange

Specialisation: the tendency of an individual, business, region or country to produce certain goods or services

Objectives: goals or targets set by a business or its stakeholders which they seek to achieve through the activities of the business

Purpose: the purpose of a business is to provide goods or services; this enables the business to fulfil the objectives of its stakeholders

Stakeholders : people who have an interest in the performance and activities of a business; shareholders managers, employees, trade unions, creditors, suppliers, customers. the government

Planned economy : an economy that is controlled by the state

Market economy : an economy that operates according to the forces of demand and supply, without interferences by the state

Mixed economy : an economy that is partly left to the forces of demand and supply, and partly controlled by the state.