| A | B |
|---|
| human resources | labour, people, employees |
| natural resources | things of the earth--water, oil, trees |
| production | creation of goods and services |
| resources | raw materials, labuor, knowledge, equipment |
| GDP output | a way of measuring how healthy our economy is |
| capital goods | goods required to run a business such as hairdryer or sink for hairdresser |
| consumer goods | clothes, cars, furniture, electronics are examples of these |
| 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 |
| tansaction | the payment given to employees who make a product or provide a service eg bakers, tailor, teacher |
| expenditure | the spending of income on goods and services |
| material living standards | the ability to buy goods and services |
| non material living standards | quality of life |
| production | The making of a good or service eg baking bread or making clothes |
| income | The payment given to employees who make a product or provide a service eg bakers, tailor, teacher |
| tertiary | name of sector that deals with services eg hospitality |
| primary | name of sector that deals with the extraction of naturl products |
| secondary | name of sector that makes goods and services from natural materials |
| efficiency | an improvement in this means we are getting MORE out of our LIMITED RESOURCES |
| allocative | efficiency is when resources are used to produce the goods and services that people value most. |
| dynamic | an improvement in this efficiency means INCREASING THE SPEED at which resources are being reallocated |
| technical | a type of efficiency Maximising output given the resources available. no wastage |
