Economic framework

Question	Answer
what are resources	resources are things such as land, machinery, workers, material, oil, crops, money, etc, which are used in the production of goods and services
what is economics	the study of how individuals, businesses and governments make decisions
what is the difference between a want and a need	a want is something you would like and a need is something you cannot live without
what is the difference between opportunity and financial cost	opportunity cost is the opportunity / item that you cannot buy because you chose to buy something else, financial cost is the actual cost of something
what are the four groups of production	land labour enterprise and capital
explain the group land	all resources provided by nature that help in the production of goods and services, example; sea
explain the group labour	all the people involved in producing goods and services, skilled or unskilled, example; engineer
explain the group capital	all the artificial items which help produce goods and services, example; motor vehicles
what is an entrepreneur	the person or organisation that provides the enterprise (land, labour and capital in the hope of making a profit)
what is economic growth	an increase in the amount of goods and services a country produces from one year to the next
what is inflation	an increase in the cost of living from one year to the next

Resource summary

	Created by caitriona.mcgett over 11 years ago