Front

need

Back

a good or service essential for living

Front

want

Back

a good or service which people would like to have, but not essential for living.

Front

Factors of production

Back

those resources needed to produce goods or service.

Front

scarcity

Back

lack of sufficient products to fulfill the total wants of the population

Front

opportunity cost

Back

the next best alternative given up by choosing another item

Front

specialisation

Back

when people and businesses concentrate on what they are best at

Front

division of labour

Back

when the production process is split up into different tasks and each worker performs one of these tasks. It is a form of specialisation.

Front

businesses

Back

combine factors of production to make products which satisfy people's wants

Front

added value

Back

the difference between the selling price of a product and the cost of bought-in materials and components

Front

Advantages of division of labour：

Back

1. 1. workers are trained

2. 2. less time wasted

3. 3. quicker & cheaper