Economic Concepts Flashcards

Front

A need

Back

A good or service essential for living

Front

A want

Back

A good or service people would like to have, but which is not essential for living

Front

Economic Problem

Back

Unlimited wants but limited resources to produce goods and services

Front

Factors of production

Back

Resources needed to produce goods and services; limited in supply

Front

Scarcity

Back

Lack of sufficient products to fulfill total wants of the population

Front

Opportunity cost

Back

The next best alternative given up by choosing another item

Front

Specialization

Back

Occurs when people and businesses concentrate on what they are best at

Front

Division of labour

Back

Production process split into tasks, each worker performs one task

Front

Primary sector of industry

Back

Extracts and uses natural resources to produce raw materials

Front

Secondary sector of industry

Back

Manufactures goods using raw materials from the primary sector