A good or service that we desire, but is not essential for living
2 of 10
The Economic Problem
We have unlimited wants, but limited resources. This creates scarcity.
3 of 10
Scarcity
Lack of sufficient resources to fulfill the total population's wants.
4 of 10
Opportunity Cost
The next best item given up by choosing another.
5 of 10
Factors of Production
Resources needed to produce goods and services-- e.g. land, labour, capital and enterprise.
6 of 10
Business
An organisation that combines factors of production to produce goods and services to satisfy people's wants and needs.
7 of 10
Specialisation
People and businesses concentrate on what they're best at.
8 of 10
Division of Labour
Production is split into separate tasks. Each worker specialises in one task.
9 of 10
Added Value
The product's selling price-cost of bought in materials. Businesses often try to increase added value by increasing prices of cutting costs. However, this has risks-- Will consumer be willing to pay higher prices? Will it reduce quality?
10 of 10
Other cards in this set
Card 2
Front
A good or service that we desire, but is not essential for living
Back
A Want
Card 3
Front
We have unlimited wants, but limited resources. This creates scarcity.
Back
Card 4
Front
Lack of sufficient resources to fulfill the total population's wants.
Comments
No comments have yet been made