First year Business

What is an economy

• money

• how we spend money in a country

• how goods and services make money

• how goods and services are bought, sold and used in a country

4 factors of production

• Land, Labour, Money and Economy

• Land, Wages, Capital and Enterprise

• Land, Labour, Capital and Enterprise

• Land, Labour, Profit and Enterprise

Reward for labour

• Wages

• Profit

• Rent

• Interest

What is a need

• Something we can do without

• Something we really want

• Something we can't do without

• Something we like

Resources are S_____________

• Scarce

• Supply

• Surplus

• Super

Financial cost of something is....

• The choice we have

• The one we don't choose

• How much is left after we buy it

• The price we pay for it

Opportunity cost is...

• The cost of the item

• The cost of the alternative foregone

• The price we pay

• The one we pick if we have a choice

A rational choice is...

• Where expected losses outweigh expected gains

• Where expected benefits outweigh expected losses

• The cost of the alternative foregone

• Scarcity

Economic term for 'satisfaction'

• Utility

• Facility

• Ability

• Needs

Three main types of economy are

• Free Market, Central, Mixed

• Free Economy, Centrally Planned, Mixed

• Free Market, Centrally Organised, Mixed

• Free Market, Centrally Planned, Mixed