Business
An organisation that produces goods or services, usually with the aim of making a profit.
Needs
Essential items that people require to survive, such as food, water, shelter, and clothing.
Wants
Goods or services that people desire but do not necessarily need to survive.
Scarcity
The fundamental economic problem where unlimited human wants exceed the limited resources available to satisfy them.
Opportunity Cost
The value of the next best alternative given up when making an economic decision.
Factors of Production
The resources used in producing goods and services: land, labour, capital, and enterprise.
Land
All natural resources used in production, including physical land, minerals, oil, forests, and water.
Labour
The human effort (physical and mental) used in the production of goods and services.
Capital
Man-made resources used in production, such as machinery, tools, factories, and equipment.
Enterprise
The skill and risk-taking ability of an entrepreneur who combines other factors of production to create a business.
Added Value
The difference between the selling price of a product and the cost of the inputs used to make it.
Production
The process of converting inputs (factors of production) into outputs (goods and services).
Primary Sector
Businesses involved in extracting or harvesting natural resources, e.g. farming, mining, fishing.
Secondary Sector
Businesses involved in manufacturing and construction, transforming raw materials into finished goods.
Tertiary Sector
Businesses involved in providing services, such as retail, banking, transport, and hospitality.
Quaternary Sector
Businesses involved in knowledge-based activities such as information technology, research, and consultancy.
Deindustrialisation
The decline of manufacturing industry in a country, often accompanied by growth in the service sector.
Industrialisation
The development and growth of manufacturing industries in a country or region.
Mixed Economy
An economic system that combines elements of both free market and planned (command) economies.
Free Market Economy
An economic system where resources are allocated by price through the interaction of supply and demand with little government intervention.
Planned Economy
An economic system where the government controls the allocation of resources and makes major economic decisions.
