Opportunity Cost
What you have to give up if you choose to do A rather than B
Goods
Things ready for consumption of human wants (clothing, food)
Services
Activities provided by other people (doctors, hairdressers, waiters)
Export
Goods and services that are made in one country and shipped to another country
Import
Good and services brought into one country from another country
Standard of living
The level of wealth, comfort and material goods available to a particular class
Economy
All activities undertaken for the purpose of producing, distributing and consuming good and services
Needs
Things that are essential for survival
Wants
Things we desire but are not necessary for survival
Consumer
A person or group that is the final user of goods and services produced in an economy
Producer
Individuals and businesses involved in the production of goods and services
Demand
The quantity of goods and services that consumers are willing to buy at a given place
Supply
A quantity of goods and services that producers are willing to sell at a given price
Gross Domestic Product (GDP)
Value of all the finished goods and services produced within a country's borders in a specific time period
Household Sector
Refers to all consumers in the economy
Business Sector
Made up of a large number of producers, all seeking to provide goods and services to satisfy the needs and wants of households
Economic Resources
Land, labour, capital
Inflation
When there is an increase in the level of prices paid for goods and services over a period of time usually a yearly basis.
Free enterprise
where individuals can set up a business and make a profit.
Socialist Economies
Cuba, China, North Korea
Capitalist Economies
Great Britain, Canada, United States