KEY TERMS (micro)

• What are the main economic groups?

  Consumer, Producer, Government
• What is a consumer?

  A person or organization using a good
• What is a good?

  A tangible product that can be touched
• What is the role of government in economics?

  A political authority managing a country's operations
• What is a producer?

  A person or company that supplies goods
• What does production refer to?

  The total output of goods and services
• What are the factors of production?

  Labour, Land, Capital, Enterprise
• What is labour in economics?

  The workforce of an economy
• What is a service?

  An intangible product that cannot be touched
• What does land refer to in factors of production?

  The natural resources of an economy
• What is capital in the context of production?

  Human-made aids to production like machinery
• What is enterprise in economics?

  The entrepreneur organizing the other factors
• What does interdependent mean in economics?

  How factors rely on one another
• What is the basic economic problem?

  Scarce resources and unlimited wants
• What are scarce resources?

  Insufficient amounts to satisfy all wants
• What is a need in economics?

  Something essential for survival
• What is a want in economics?

  Something not essential for survival
• What is opportunity cost?

  The next best alternative given up
• What does economic choice refer to?

  An option for using scarce resources
• What is economic sustainability?

  The best use of resources for growth
• What is social sustainability?

  Improvement in quality of life for all
• What is environmental sustainability?


  Minimal impact on the environment
• What is a market?

  A way to buy and sell goods
• What is a market economy?

  Resources allocated by supply and demand
• What is the primary sector in economics?

  Direct use of natural resources
• What is the secondary sector?

  Manufacturing and construction activities
• What is the tertiary sector?

  Activities that include the idea of service
• What is a factor market?

  Market for services of production factors
• What is a product market?

  Market for final goods and services
• What does exchange mean in economics?

  Giving up something for something desired
• What is specialization?

  Concentrating on producing best products
• What is division of labour?

  Workers specialize in one production area
• What is the law of supply?

  Quantity supplied varies directly with price
• What is supply in economics?

  Willingness to provide goods at prices
• What is individual supply?

  Supply by an individual producer
• What is market supply?

  Total supply from all individual producers
• What happens when there is a movement along the supply curve?

  Price changes lead to supply adjustments
• What is a shift of the supply curve?

  A complete shift of the existing supply curve
• What is elastic supply?

  Quantity supplied changes more than price
• What is inelastic supply?

  Quantity supplied changes less than price