ECONOMICS UNIT 1

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What is the basic economic problem?
Resources are scarce and wants are infinite.
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What is a need?
Something essential to survive e.g. food
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What is a want?
Something you would like to have e.g. cars
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What are resources?
Something used to produce output.
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What is productivity?
Output per worker per period of time.
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What are the factors of production?
Capital, Enterprise, Land, Labour (CELL)
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What is Capital?
Capital are referred to goods to produce other goods. E.g. Machinery
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What is Enterprise?
Taking risks and managing the whole production. This role could be known as an entrepreneur.
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What is the primary sector?
Where the extraction of raw materials take place e.g. mining.
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What is the secondary sector?
Where the raw materials are turned into manufacturing goods
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What is the tertiary sector?
Service sector
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What is opportunity cost?
The next best alternative foregone when making a choice.
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What is Market?
Where buyers and sellers meet to exchange goods or services.
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What is a market economy?
Where all resources are allocated by private individuals and groups.
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What is a planned economy?
Where all resources are allocated by the government?
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What is a mixed economy?
Where some resources are allocated by the government and some are allocated by private individuals.
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Whats the public sector?
The government sector of the economy. It is owned and run by the government.
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What the private sector?
The sector of the economy where firms are owned and run by private individuals.. It is owned and run by the private individuals and groups. The aim is to make profit maximisation.
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Other cards in this set

Card 2

Front

What is a need?

Back

Something essential to survive e.g. food

Card 3

Front

What is a want?

Back

Preview of the front of card 3

Card 4

Front

What are resources?

Back

Preview of the front of card 4

Card 5

Front

What is productivity?

Back

Preview of the front of card 5
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