Economics Basics

Capital resources

• A type of natural resource found in the environment.

• Something produced in an economy used to produce something else.

• A resource that is consumed immediately after use.

• A financial asset that is used for investment.

Wants

• Things people need for survival.

• Things people do not need but desire.

• Basic necessities for living.

• Items that are essential for health.

Gross Domestic Product (GDP) & GDP per Capita

• The total value of goods and services produced by a country (GDP), and the average amount per person (GDP per capita).

• The total income earned by a country's residents and businesses, including wages, profits, rents, and taxes.

• The total value of exports minus the total value of imports for a country.

• The total amount of money a government spends on public services and infrastructure.

Production

• The process of creating goods and services using resources.

• The act of selling products to consumers.

• The combining of human, natural, capital, and entrepreneurship resources.

• The distribution of finished products to retailers.

Consumers

• Those who buy goods and services.

• Individuals who produce goods.

• People who sell services.

• Entities that distribute products.

Consumption

• Buying or using goods and services.

• Saving money for future use.

• Investing in stocks and bonds.

• Producing goods for sale.

Needs

• Things people require for survival.

• Items that are nice to have but not essential.

• Luxuries that enhance quality of life.

• Things that can be easily replaced.

Business

• Producers and suppliers of services in our economy, existing to make a profit.

• A non-profit organization that provides free services to the community.

• A government entity that regulates trade and commerce.

• A group of individuals who work together for a common cause without any financial gain.

Producers

• Those who produce or make goods and services.

• Individuals who consume goods and services.

• Entities that distribute goods and services.

• Organizations that regulate the market.

Services

• Acts that people are willing to do for money.

• Physical goods that are sold to consumers.

• Promotional activities to increase sales.

• Legal agreements between two parties.