Economics Definitions 1 0.0 / 5 ? EconomicsScarcityASEdexcel Created by: Lydia AndrewCreated on: 27-09-13 17:46 Basic Economic Problem Onlya limited amount of resources are available to produce the unlimited quantity of goods and services people desire. 1 of 16 Economic Goods Goods which are scarce because their use had an opportunity cost. 2 of 16 Choice Economic choices involve the alternative uses of scarce resources 3 of 16 Free Goods E.g. air. There are no costs of production and no scarcity. They are in unlimited supply. 4 of 16 Wants Desires for consumption of goods and services. 5 of 16 Needs The minimum which is necessary for a person to survive as a human being. 6 of 16 Utility The satisfaction derived from consuming a good. 7 of 16 Scarcity/scarce resources Resources which are limited in supply so that choices have to be made about their use. 8 of 16 Non-renewable resources E.g. coal, oil, gold, copper are land resources which, once used, will never be replaced. 9 of 16 Renewable Resources E.g. timber, fish, water. A resource that can be renewed as it is used if it is carefully managed. 10 of 16 Sustainable Development Renewable resource which is being economically exploited in such a way that it will not diminish or run out. 11 of 16 Factors of Production Inputs into the production process such as land, labour, capital and enterprise. 12 of 16 Primary Sector Raw materials are extracted and food is grown. E.g. agriculture, farming, fishing, oil extraction. 13 of 16 Secondary Sector Raw materials are transformed into goods. E.g. manufacturing, food processing. 14 of 16 Tertiary Sector Produces services such as transport, sport, distribution, financial, health. 15 of 16 Quaterny Sector Information Processing. E.g. education, research and development. 16 of 16
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