front 1 Business | back 1 An organisation that organises and combines resources to produce goods and services to satisfy the needs and wants of consumers while making a profit |
front 2 Production | back 2 Organising and combining resources to produce goods and services |
front 3 Scarcity OR Economic problem | back 3 Limited resources in relation to the unlimited wants. |
front 4 Needs | back 4 Basic necessities that are crucial for survival and day to day life such as food, clothing, and shelter. |
front 5 Wants | back 5 Desires of the consumers which are not basic necessities. Wants can be luxuries. |
front 6 Opportunity cost | back 6 Next best alternative forgone |
front 7 Resources / Factors of Production | back 7 Inputs used to make goods and services. For example, Capital, Enterprise, Land, & Labour. |
front 8 Capital / Capital Goods | back 8 Amount invested in human made resources such as Equipment, Buildings and Machinery etc. |
front 9 Enterprise | back 9 Risk Taking ability, or skills and knowledge. |
front 10 Entrepreneur | back 10 A person with risk taking ability. A person who is willing to take risk and take business decisions. |
front 11 Land | back 11 All natural resources such as Vegetables, Fruits, Cattle, Minerals etc. |
front 12 Labour | back 12 Human effort or human resources, such as workers. |
front 13 Added value | back 13 Difference between the selling price of a product and the cost of producing that product. |
front 14 Adding value | back 14 Process of increasing the difference between the selling price of a product and the cost of producing that product. Trying to increase the Added Value. |
front 15 Mark-Up | back 15 Extra amount added to the cost of the product in order to calculate the selling price. |
front 16 Specialisation | back 16 When people and businesses concentrate on what they are best at. |
front 17 Business specialisation | back 17 It is when a business focuses on producing a specific range of goods and services. |
front 18 Labour specialisation OR Division of labour | back 18 The way in which work is divided so each worker concentrates on a specific task to become expert at it. |
front 19 Revenue OR Sales Revenue | back 19 Amounts earned by selling goods and services. = Selling Price per unit x Quantity Sold |
front 20 Expenses OR Costs | back 20 Amounts spent to run day to day operations of the business, and amount spent to produce goods and services. |
front 21 Profit | back 21 It is when revenues exceed the costs |
front 22 Loss | back 22 It is when costs exceed the revenues |
front 23 Primary sector | back 23 Firms whose business activity involves the extraction of raw materials |
front 24 Secondary sector | back 24 Firms that process and manufacture goods from natural resources |
front 25 Tertiary sector | back 25 Businesses which provide services to consumers and other businesses. |
front 26 Private sector | back 26 A business that is owned and controlled by normal individuals and not by the government. |
front 27 Public sector OR Public corporation | back 27 A business that is owned and controlled by the government. |
front 28 Industrialisation | back 28 It is when more factories are opened in the country. Increase in the secondary sector in an economy. |
front 29 De-industrialisation | back 29 It is when factories are closed down in a country. Decrease in the secondary sector in an economy. |
front 30 Less-Developed Economy OR Less Economically Developed Country (LEDC) | back 30 It is when a country is highly dependent on its primary sector firms, and its most GDP comes from the primary sector. It has low income and lower living standards. |
front 31 Developing Country OR Developing Economy | back 31 It is when a country is highly dependent on its secondary sector firms, and its most GDP comes from the secondary sector. It has a middle income and moderate living standards. |
front 32 Developed Economy OR More Economically Developed Country (MEDC) | back 32 It is when a country is highly dependent on its tertiary sector firms, and its most GDP comes from the tertiary sector. It has high income and high living standards. |