In the table below explain the following terms

Term/Concepts Explanation( give examples where Teacher’s

possible) feedback

Capital Capital simply refers to the funds invested

in a business used to purchase assets. To
find capital you take away your liabilities
from your assets. An example of capital is
a credit card loan.

Primary goods These are the goods that are available

from garnering the raw materials minus
the manufacturing process. Logs are an
example of a primary good, harvested
from trees including oil, fish and fruit.

Consumer goods These are goods turned into products, via

the process of manufacturing, and are
bought for consumption by the typical
customer. This includes things like jewelry
made from materials such as diamonds
as well as clothing and gasoline.

Free goods A free good is one that is in abundance

and therefore available without limit.
There is no opportunity cost and so it can
be made available in the desired quantity.
This includes sunlight, water, fresh air, for
example.

Private goods A private good is a good that is

independently owned and there are
usually limited quantities. These goods
are rival and excludable, meaning the
owners can prevent customers from
consuming the good or service. Examples
include, clothes, parking spaces, cars and
cosmetics.

Public goods Public goods contrast private goods as

they are non-excludable and non-
rivialious meaning they are provided to all
members of society without cost and
without profit. Examples of this are
lighthouses, street lamps, bridges and
roads.

Merit goods This is a type of good that helps maximize

welfare for everyone, including the user.
For example, housing, public parks and
fire protection.
Demerit goods Demerit goods are goods that bring
gratification to the user but leave adverse
effects on society. Examples of this type
of good are junk food, tobacco and
gambling. Of course, everything can be
done in a healthy moderation.

Labour Labour can be defined as the amount of

effort, whether it be physical, mental or
social, contributed to produce goods and
services within the economy. This can
include hairdressing, teaching and
housebuilding.

Loss This simply refers to when your expenses

account for more than your revenues
either of an individual or an organization.
An example of a loss is if the breadwinner
of a family becomes deceased, the family
may have trouble keeping on top of their
expenses as they have lost their main
source of income.

Market A market is any place where buyers and

sellers can communicate in order to
facilitate the exchange of goods and
services. Examples of markets include
retail outlets, e-retailers and auction
markets.

Opportunity cost Opportunity cost is the value of the next

highest valued option. It is a substitute for
the original use of the resource. An
example of this is taking a vacation
instead of spending the money on a new
car. The opportunity cost is not getting the
new car.

Organisation An organisation is a group of people who

work together to fulfill the goals of the
organisation. Examples of an organisation
include a union, a charity and even a
neighbourhood association.

Producer A producer creates and supplies goods

and services creating sellable products to
which they sell for the purpose of profit.
Producers include farmers, manufacturers
and construction companies.

Production Production is the process in which various

inputs, or plans, are combined to make
something for consumption, or output.
This includes bakeries, candle
manufacturing and shoe manufacturing.
Profit This is the financial gain referring to the
difference between the amount earned
and the amount spent for things such as
producing. An example of profit is if it
costs you $2.50 to make a cookie and you
sell it for $4.00, you earn a profit of $1.50.

Direct services A direct service is one that directly affects

the party we want impacted. Examples of
these services include speech therapy,
counseling, physical therapy and nursing
care.

Indirect services An indirect service is an activity provided

without person-to-person contact which
includes administration, maintenance,
laundry and advertising.

Trade Trade is the exchange of goods or

services for money from one person to
another. An example of trade is tea
imported from India and bought from the
United States.