UNIT 1

• What are the three main economic groups?


  Consumers, Producers, Government
• What is economics?


  The study of money and how people spend their money?
• What is a consumer?


  A person or organisation that directly uses a good or service.
• What is a government?


  A group of people elected by the public that has the power to run the country.
• What is a producer?


  They make or supply goods and services.
• What is a good?


  A tangible product, that can be seen or touched.
• What is a service?


  An intangible product that can’t be seen or touched.
• What are the four factors of production?


  Capital, Enterprise, Land, Labour
• What is land?


  Land describes natural resources available for production. This can be anything from water to the raw materials from the primary sector that are needed to make the products.
• What is labour?


  Labour is the human Resources that contribute to the process of supplying the product or service. This might be people working in a factory or a hairdresser supplying the service to a client.
• What is capital?


  The capital is the equipment, factories and offices that help to supply the goods or services. The key distinction between capital and land is that capital needs to be human-made first.
• What is enterprise?


  Enterprise refers to the people who take risks and create a good or service from the other factors of production.
• What are scarce resources?


  When there is an insufficient amount of something to satisfy all wants.
• What are unlimited wants?


  The infinite desire for goods and services consumers would like to have.
• What is the economic problem?


  How to best use scarce resources to satisfy the unlimited wants of people.
• What is an economic choice?


  An option for the use of selected scarce resources.
• What is economic sustainability ?

  The best use of resources in order to create growth or development for a country, firm or individual, both now and into the future.
• What is social sustainability?


  The impact of development or growth that promotes an improvement in quality of life for all, now and into the future.
• What is environmental sustainability?


  The impact of development or growth where the effect on the natural world is small and possible to manage, now and into the future.