Mindblown: a blog about philosophy.

Consumer goods These are the physical and tangible goods sold to the general public. Durable: cars, washing machines. Non durable: food, drinks

Factors of production Land: All the renewable and non-renewable resources of nature. Eg coal, crude oil, timber Labor: Manual and skilled labor which make up the workforce of the business. Capital: Finance needed to set up a business and pay for its continuous operations. All man-made resources used in production eg computers, machines, factories, offices,…

Business activity Business activity is the transformation of resources into products to satisfy the needs and wants of customers. Business activity is carried out: to earn a return on capital available to investors, to specialize in the commodity to make it more profitable, to get money to purchase goods and services, most importantly to get…

Opportunity cost It is the next best choice given up in favor of the alternative chosen from two choices. With limited resources if consumers choose to buy a disc man then the trainers become the opportunity cost.

Scarcity Scarcity is the national economy’s problem. Commodities are scarce because it commands value and price. Everyone has limited resources to fulfill their unlimited wants and needs. Scarcity tells us about the misery and unhappiness around the world.

Unlimited wants and limited resources Everyone has limited resources whether its time, money, energy or skills that kepp us from maintaining our goals, needs or dreams properly. It should be clear to all of us that there are insufficient goods to satisfy all of our wants and needs at one time. The purpose of the…