Capital: goods/materials that are used for the production of other items. Not consumed in their own right.
Consumption: Using up goods/services.
Consumer Goods: goods that are wanted because they provide satisfaction to their owner.
Demerit Goods: goods that are perceived to have a negative impact/effect on society/individuals.
Economy: Total value of goods & services produced & exchanged within a country.
Enterprise: risk taking & decision making in business
Factors of Production: land, labour, capital, enterprise.
Fixed Capital: capital goods that do not need replacing in the short term (machinery, tools, buildings).
Free Goods: goods that require no resources to make (wind, sunshine).
Goods: items produced by the factors of production (usually for economic gain).
Labour: the human effort (mental & physical) required to produce something.
Land: the land we use/build on & resources that are contained in the land and water.
Markets: Place where goods & services are exchanged - (may be visible or invisible).
Merit Goods: goods that are perceived to provide positive externalities (beneficial to society)
Needs: requirements for continued existence (food, clean water, shelter)
Opportunity Cost: the cost of the next best alternative.
Production Possibility Curve: a curve that represents possible output if the factors of production are used efficiently. Also known as the 'opportunity cost curve' as it can be used to show the opportunity cost of producing different products/quantities).
Public Goods: good provided by the government (paid for through taxes) that everybody benefits from (street lighting).
Resources: items that are needed/ useful for consumption or the production of other items.
Scarcity: limited availability of resources (ones that will run out eventually), not enough to satisfy all the wants.
Services: something that fulfils a need, often not a physical object (banking, teachers, policemen).
Wants: the desires that people have that are not necessary for their existence/ luxuries.
Working Capital: capital products that are used up in the production process (raw materials).