chapter 1- The Nature and purpose of econic activi
Goods: tangible products that can be touched and consumed
Services: things other people or businesses do for you
Needs: something neccesary to sustain life
Wants: something chosen to satisfy a need or to make life more enjoyable
Efective demands: demand for a product that is backed up by an ability and willingness to pay for it
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Opportunity cost: the cost of one item in terms of the next best alternative that must be foregone
Exchange : the ability to exchange one type of goods or services for another, normally using money as a means of exchange
Specialisation: the tendency of an individual, business, region or country to produce certain goods or services
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chapter 2- What is business all about
Objectives: goals or targets set by a business or its stakeholders which they seek to achieve through the activities of the business
Purpose: the purpose of a business is to provide goods or services; this enables the business to fulfil the objectives of its stakeholders
Stakeholders : people who have an interest in the performance and activities of a business; shareholders managers, employees, trade unions, creditors, suppliers, customers. the government
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chapter 3- what part does the state play
Planned economy : an economy that is controlled by the state
Market economy : an economy that operates according to the forces of demand and supply, without interferences by the state
Mixed economy : an economy that is partly left to the forces of demand and supply, and partly controlled by the state.
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