Topic 1 - Introduction to Economics

• Environmental Sustainability


  impact of development or growth where the effect on the environment is small and possible to manage, now and into the future
• Social Sustainability


  impact of development or growth that promotes an improvement in quality of life for all, now and into the future
• Economic Sustainability


  how best to utilise scarce resources in order to create responsible development, now and into the future
• Opportunity Cost


  value of the next best alternative foregone
• Economic Choice


  option for the use of scarce selected resources
• Economic Problem


  how best to use limited resources to satisfy unlimited wants
• Wants


  something a consumer would like to have which is not required for survival
• Needs


  something a consumer has to have to survive
• Unlimited Wants


  infinite desire for something
• Scarcity


  when there are insufficient resources to satisfy all wants
• Capital


  man-made aids to production
• Enterprise


  organises the factors of production and take risks
• Labour


  human input into the production process
• Land


  natural resources available for production
• Factors of Production


  resources that can be used in an economy to produce goods and services
• Interdependence


  when one group responds to or is affected by the actions of another
• Government


  political authority that decides how a country should be run and manages its operations
• Producer


  individual or firm or country that makes, supplies grows a good or service
• Consumer


  person, firm or organisation who directly uses a good or service
• Service

  intangible product
• Good


  tangible product