| A | B |
|---|
| Needs | the basic products that people need to stay alive |
| Wants | The desire to buy goods that you do not need to stay alive |
| Consumer Goods | products that are sold to people rather than businesses |
| Producer Goods | products which are sold from one business to another |
| Goods | Tangible goods- such as a DVD |
| Services | Intangible goods- such as a train ticket |
| Opportunity Cost | The cost of the alternative that has to be given up when a choice is made |
| Chain of Production | the various production stages through which a product passes before being sold to a consumer |
| Interdependance | when firms are linked together through trade and are reliant on each other for their survival |
| Primary industry | activities which mine, grow, collect or cut down raw materials such as mining |
| Secondary industry | activities which transform primary products into manufactured goods |
| Tertiary industry | activities which provide services such as shops |
