Production factors The means you need to be able to produce
Nature a type of a production factor (agricultural land, (rain) water etc.)
Labour a type of a production factor (employees)
Capital goods a type of a production factor (machinery, tools etc.)
Entrepreneurship a type of a production factor (owners, people who decide etc.)
Scarce goods When something else is needed to produce the good (coffee in restaurant)
Free goods When you don’t have to pay/invest time in something (sun)
Goods What you can hold (loaf of bread at a restaurant)
Services What you can’t hold (waitress at a restaurant, cinema screen etc.)
Needs What people need to be satisfied (scooter, music, tomatoes etc.)
Economics Study how people try to fulfil their needs with scarce good.
Means Required to fulfil the needs of a person (income, vegetable garden etc.)
Self-sufficiency Making products yourself
Consumer Consumes products (consumables)
Consumables Products and services that fulfil the needs of the consumer
Budget line How much you can buy with a certain amount of money shown with a line
Alternative use Means that can be used in multiple ways (paper)
Budget(plan) Overview of the expected income and expenses
Daily expenses Regularly recurring expenses paid from the household budget
(housekeeping, fuel, groceries)
Fixed costs Unavoidable, regularly recurring expenses (rent, gas, electricity etc.)
Non-recurring (high) Large expenses that only occur occasionally. (holiday, fridge replacement,
charges saving for future car, clothes etc.)
Barter Exchanging products
Division of labour Dividing tasks among individuals
Economy of scale A business can and starts to manufacture more products
Indirect barter Selling a product for money
Labour productivity The number of items an employee can produce within a period of time
Specialisation Focusing on a limited number of activities
Credit card Card used to make purchases on credit
Debit card A means of using scriptural money
External value of money The amount of foreign concurrency you can purchase with one euro
(a euro)
Fiat money The value of money is based on confidence
Giro collection form A payment form that is used to pay a bill
Internal value of money The number of goods and services you can purchase with one euro in your
(a euro) own country.
Intrinsic value of money The material value of money
Nominal value of money The value indicated on notes and coins
Money A generally accepted means of exchange
Notes and coins Tangible money
Online banking Paying via the internet
Scriptural banking Money deposited in bank and giro accounts
Transfer form A way of transferring money from your own account to another account
Economy summary – chapter 1 (scarcity and exchange)
Nature a type of a production factor (agricultural land, (rain) water etc.)
Labour a type of a production factor (employees)
Capital goods a type of a production factor (machinery, tools etc.)
Entrepreneurship a type of a production factor (owners, people who decide etc.)
Scarce goods When something else is needed to produce the good (coffee in restaurant)
Free goods When you don’t have to pay/invest time in something (sun)
Goods What you can hold (loaf of bread at a restaurant)
Services What you can’t hold (waitress at a restaurant, cinema screen etc.)
Needs What people need to be satisfied (scooter, music, tomatoes etc.)
Economics Study how people try to fulfil their needs with scarce good.
Means Required to fulfil the needs of a person (income, vegetable garden etc.)
Self-sufficiency Making products yourself
Consumer Consumes products (consumables)
Consumables Products and services that fulfil the needs of the consumer
Budget line How much you can buy with a certain amount of money shown with a line
Alternative use Means that can be used in multiple ways (paper)
Budget(plan) Overview of the expected income and expenses
Daily expenses Regularly recurring expenses paid from the household budget
(housekeeping, fuel, groceries)
Fixed costs Unavoidable, regularly recurring expenses (rent, gas, electricity etc.)
Non-recurring (high) Large expenses that only occur occasionally. (holiday, fridge replacement,
charges saving for future car, clothes etc.)
Barter Exchanging products
Division of labour Dividing tasks among individuals
Economy of scale A business can and starts to manufacture more products
Indirect barter Selling a product for money
Labour productivity The number of items an employee can produce within a period of time
Specialisation Focusing on a limited number of activities
Credit card Card used to make purchases on credit
Debit card A means of using scriptural money
External value of money The amount of foreign concurrency you can purchase with one euro
(a euro)
Fiat money The value of money is based on confidence
Giro collection form A payment form that is used to pay a bill
Internal value of money The number of goods and services you can purchase with one euro in your
(a euro) own country.
Intrinsic value of money The material value of money
Nominal value of money The value indicated on notes and coins
Money A generally accepted means of exchange
Notes and coins Tangible money
Online banking Paying via the internet
Scriptural banking Money deposited in bank and giro accounts
Transfer form A way of transferring money from your own account to another account
Economy summary – chapter 1 (scarcity and exchange)
