Key Terms
Business Activity
? Barter System ? a system of exchange which involves the swapping of goods between individuals.
? Capital Goods ? goods used to produce other goods, such as tools, equipment and machinery.
? Consumers ? individuals who use or ?consume' goods and services to satisfy their needs and wants.
? Customers ? individuals who buy goods and services supplied by businesses.
? De-industrialization ? the decline in manufacturing.
? Division of labour ? specialization in specific tasks or skills by individuals.
? Factors of production ? resources used by businesses to produce goods and services.
? Markets ? anywhere that buyers and sellers communicate to exchange goods and services.
? Money ? any substance which is generally accepted as a means of exchange.
? Needs ? human requirements which must be satisfied for survival.
? Primary production ? activities which involve the extraction of raw materials from the earth and the growing of food.
? Secondary production ? activities such as manufacturing which transform raw materials into finished goods.
? Specialisation ? in business, the production of a limited range of goods.
? System ? parts that work together to achieve an objective; a system can be a communication system, a business, an economic or political system.
? Tertiary production ? activities which involve the provision of services.
? Wants ? human desires w ...