Economic Foundations 0.0 / 5 ? EconomicsTopic 1 : Economic FoundationsGCSENone Created by: gizmosupremacyCreated on: 16-12-23 15:22 What is economics? The study of the allocation of limited resources 1 of 13 What is the difference between needs and wants? Needs are items that are essential for life, whereas wants are desirable items, but ones that aren't necessary 2 of 13 Why might needs change over time? Needs don't generally change over time, but the quantities might (eg. the amount you eat) 3 of 13 What is the Basic Economic Problem? Consumers have unlimited demand, but resources are limited, so this demand can't always be met 4 of 13 What are the 3 key economic decisions? What to produce; how to produce it; who will benefit from production? 5 of 13 What is economic activity? The making, producing, buying, selling, or consuming of products and services, to satisfy the ever-changing needs of society 6 of 13 What are the factors of production? inputs that are in the production process to produce an output of finished goods and services 7 of 13 Name the 4 factors of production Capital, enterprise, land, labour 8 of 13 What is capital, and its reward? The machinery and tools used in the creation of goods and services (eg. fertiliser), rewarded by interest 9 of 13 What is enterprise, and its reward? Individuals who take the factors of production and convert them into goods and services (eg. entrepreneur), which is rewarded with profit 10 of 13 What is land, and its reward? The natural resources available to an economy (resources that come from physical spaces, like fish), rewarded with rent 11 of 13 What is labour, and its reward? The human elements involved in the production of goods and services (employees), rewarded with wages or salaries 12 of 13 What is an opportunity cost? The next best alternative that is given up when making a choice 13 of 13
Comments
No comments have yet been made