| A | B |
|---|
| Economics | The study of how individuals choose to use scarce resources in order to produce and exchange desired goods and services in order to meet needs and wants |
| Economy | a community’s system of dealing with the production and exchange of goods |
| Scarcity | Unlimited wants and limited resources. |
| Needs | Something that is vital to survival |
| Wants | Something you would like to have. |
| Factors of Production | Land, Labour, Capital |
| Producers | Those who make or provide goods and services |
| Consumers | Those who purchase or make use of goods and services |
| Disparity | The condition of being unequal |
| Land | Space for production and the resources themselves |
| Labor | People whoare able to work for production |
| Capital | Money in the form of wages and money needed to invest in businesses to have them get off the ground and operate |
| Levels of Production | Primary, Secondary, Tertiary, Quanternary |
| Primary Industry | Natural resources |
| Secondary Industry | Manufacturing |
| Tertiary Industry | Service Sector |
| Quanternary | Research and Development, Managerial |
| 4 Basic Questions | What to make, for whom to make it, how to make it and how much to make |
| Laissez Faire Economics | The government should not be involved in the economy |
| Innovation | A new and better way of doing things |
| Technology | A process by which practical problems are solved through the application of scientific knowledge. |
| Individualism | The interests of the individual take precedence over the interests of the group |
| Collectivism | The interests of the group take precedence over the interests of the individual |
| Standard of Living | Material needs, wants and comforts. Can be measured |
| Quality of Life | Our own ideas about how we should live and the value that we ourselves place on our live. Cannot be measured because it is subjective |
