Wants
Things that add comfort and pleasure to your life
Needs
Things that are required in order to live
Economic resources (factors of production)
land, labor, capital, entrepreneurship
Land Resources
Materials that come from the earth
Labour resources
The people that provide their skills, effort and knowledge to the business
Capital resources
The tools, equipment, and buildings that are used to produce goods and services
Enterprise resources
The people's ideas, which are often used to start a new business
Economic Problem
There exist unlimited wants but limited resources to produce the goods and services to satisfy those wants, this creates scarcity.
Scarcity
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
Making Choices
Balancing cost and benefits when making an economic decision based on scarce resources
Specialisation
When people and businesses concentrate on what they are best at in order to maximise economic benefit
Interdependence
The way participants in an economy (consumers, business and governments) rely on each other to provide or trade goods and services.
Allocation
How we provide and distribute scarce resources among producers
Markets
The exchange of resources (or goods/services) among buyers and sellers (e.g. the real estate market)
Economic performance
How well an economy is performing measured by how many people are employed and how much it is producing
Living stadards
The level of wealth, material goods, comfort and life necessities available to people living in an economic system