| A | B |
|---|
| capital resources | equipment, money, buildings |
| human resources | labour, people, employees |
| natural resources | things of the earth--water, oil, trees |
| production | creation of goods and services |
| profit | sales - expenses = |
| resources | raw materials, labuor, knowledge, equipment |
| goods | tangible things that we buy |
| service | intangible things that an expert will provide for us eg plumber |
| price | the amount we are willing to pay for a good or service |
| inflation | a term to describe a general increase in prices |
| employment | example of macroeconomic area - the number of people who are >15 and work more than one hour a week |
| GDP | a way of measuring how healthy our economy is |
| factors of production | land, labour and capital is collectively known as this |
| land | a factor of product that is natural such as water, trees and ocean for example |
| labour | a factor of production that involves human capital |
| scarcity | result of limited resources and unlimited wants |
| opportunity cost | the value of the next best option foregone when making choices |
| product possibility frontier | graph that demonstrates decision making and opportuntity cost |
| businesses | basic circular flow diagram shows the relationship between households and ? |
| efficiency | a term that describes how well a country is using its resources |
| allocative | type of efficiency when the collective needs and wants of society are being maximised |
| inter temporal | this type of efficiency involves balancing out the current needs and wants of society with their future needs and wants |
| dynamic | an improvement in this type of efficiency means increasing the speed at which resources are being reallocated |
