Definitions
Choice: the way consumers make choices about what they buy to satisfy their needs and wants.
Consumer: people who buy things.
Economics: how people (produces) produce goods and services for other people (consumers) to consume and buy; created by maximising the amount of goods and services from Earth's limited resources.
Employee: a person who works for a business. Also known as staff.
Employer: businesses who employ workers to produce goods and services.
Employment: having a job that returns an income for the work provided.
Export: sending goods to another country.
Goods: a product sold or traded within an economy, goods are items (such as pens or pencils).
- Simple definition
- Detailed definitions: Consumer goods; Capital goods; Positional goods
Gross Domestic Product (GDP): the total value of goods and services produced in a country over a year.
Import: bringing in goods from another country.
Inflation: the general increase in prices of goods and services.
Interest: the amount of money paid to a person by a bank for keeping their money in an account with the bank; if borrowing money from a bank the interest is what is paid to the bank on top of the original amount.
Labour: the skills, knowledge and effort provided by a worker.
Market: where buyers and sellers exchange money.
Opportunity cost: what we miss out on when making a choice, when more than two options are available, our opportunity cost is what we miss out on.
Producer: a person or business who makes or sells things for profit.
Profit: the amount of money a business earns after taking away the expenses it has to pay.
Resource: anything human or natural that can used to satisfy a need.
- Simple definition
- Detailed definitions: Common resource ; Renewable resource ; Nonrenewable resource
Scarcity: the problem of people having unlimited wants and needs but limited resources to support those needs and wants.
Services: a product sold or traded within an economy, services are activities performed by others (such as cleaning and doctors).
Specialisation: a method of production where a business or area focuses on the production of a limited scope of products or services order to gain a greater degree of efficiency.
Survey: a series of questions that are asked to a group of people to gather information about what most people think.
Unemployment rate: the percent of people who are unemployed out of all the people who are able to work