econ paper 1 key terms

• government


  a political authority that decides how a country is run and manages its operations
• producers


  A person, company, or country that makes, grows, or supplies goods or commodities for sale
• consumer


  people that directly use a good or service
• goods


  tangible product, physical
• services


  intangible products
• land


  rent
• capital


  investment
• labour


  wage
• Enteurpernuership


  profit
• human capital


  the skills and knowledge gained by a worker through education and experience
• factors of production


  the resources in an economy that can be made into goods and services
• Productivity


  output per person per period of time
• chain of production


  combination of FOPs
• primary sector


  anything that comes from the ground
• secondary sector


  turns raw materials into products
• tertiary sector


  where it's sold to consumers and customers
• customer


  a person or organization that buys goods or services from a certain store or business.
• primary firms


  firms that get resources out of the ground (oil company)
• secondary firms


  converts primary sector output into products (sweatshops)
• tertiary firms


  firms that provide services (estate agents)
• economic problem


  how to best use scarce resources to satisfy unlimited wants of people (NHS)
• scarce resources


  insufficient/finite amount of resources to satisfy demand
• unlimited wants


  infinite desire for goods and services consumers would like to have
• oppurtunity cost


  The next best alternative given up when making a choice
• economic choice


  option for the use of selected resources
• Economic sustainability


  The best use of resources in order to create responsible development or growth, now and into the future
• Social sustainability


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


  a way of bringing toughter buyers and sellers to buy and sell goods and services
• market economy


  An economy in which scarce resources are allocated by the market forces of supply and demand
• factor market


  market in which the servies of FOPs are bought and sold (real estate agent sells houses on land which is an FOP)
• product market


  marker in which final goods and services are offered to consumers
• derived demand


  a product of FOP that's dependent on the demand of another product (no teachers=no students)
• complimentary demand


  Computers and software are complementary goods. When consumers buy a computer, they often need software to use it effectively. Similarly, when consumers purchase software, they need a computer to run it. An increase in the demand for computers would likely lead to an increase in the demand for software,
• joint demand


  Cars and gasoline are demanded together as part of a single final product: transportation. When consumers buy cars, they also need gasoline to fuel them. Likewise, the demand for gasoline is closely tied to the number of cars on the road. As the demand for cars increases, the demand for gasoline to power those cars also increases. Therefore, cars and gasoline exhibit joint demand.
• specialisation


  the process by which individuals and possibly whole economies concentrate on products that they're best at producting (Taiwan-Microchips)
• exchange


  The giving up of something that the individual or firm has, in return for something they wish to have but do not possess
• individual specialisation


  Mr Dhir (Econ teacher)
• firm specialisation


  Airbus (Aircraft)
• region specialisation


  Assam (Tea)