Basic Economic Concept (Gr7)

Define economics

• The study of resources, its utilisation and how decisions are made by individuals and organisations in an eff ort to satisfy unlimited wants with limited resources.

• Basic requirements or necessities of life. Something you must have for survival, without it you would not be able to live.

• Things that you would like to have, but these are not necessary for survival, and you could live without them.

• The inputs that are required to create outputs which are products and services.

Define wants

• The study of resources, its utilisation and how decisions are made by individuals and organisations in an eff ort to satisfy unlimited wants with limited resources.

• Basic requirements or necessities of life. Something you must have for survival, without it you would not be able to live.

• Things that you would like to have, but these are not necessary for survival, and you could live without them.

• The inputs that are required to create outputs which are products and services.

Define needs

• The study of resources, its utilisation and how decisions are made by individuals and organisations in an eff ort to satisfy unlimited wants with limited resources.

• Basic requirements or necessities of life. Something you must have for survival, without it you would not be able to live.

• Things that you would like to have, but these are not necessary for survival, and you could live without them.

• The inputs that are required to create outputs which are products and services.

------------ are the inputs that are required to create outputs which are products and

services.

------------------- are materials provided by the earth or nature which can be used.

-------------------- are resources those which can be replaced in a reasonable time or those which are available consistently such as trees and water.

-------------------------- are those which take a long period of time to get replaced or cannot be replaced once used.

-------------------- is the selection between two or more commodities. Choices are made on a daily basis by all consumers, firms and governments.

---------------------- is not how much money we spend on goods, but the other goods and services we could have bought with the money.

------------------- is the use of goods and services to satisfy human wants. It can either be direct consumption or indirect consumption.