Unit one: How the market works
The economic problem - Scarce resources infinite wants.
Scarce resources - Limited resources but many ways to use them.
Disposible income - Money left ever after spending on necessities and taxation
Opportunity cost - What you miss out on when buying another good/service.
Economic choice - Deciding between different uses of scarce resources
Factors of production - Capital Enterprise Land Labour
Rewards of production - Capital = Profit, Enterprise = Interest, Land = Rent, Labour = Wages
Specialisation - Concentrating on one specific thing that producer is good at making to make more profit
Sectors of production - Primary - Extraction of raw materials, Secondary - Manufactoring of raw materials, Tertiary - The service sectors e.g Health care
Chain of production - Primary --> Secondary --> Tertiary --> Consumer