Choices Flashcards
Economics
The study of how to allocate scarce resources in the most effective way
Economics problem
How to allocate scarce resources among alternative uses
Scarcity
A situation where there are insufficient resources to meet all wants
Land
Natural resources in an economy
Labour
The quantity and quality of human resources
Capital
Man made aids to productio
Enterprise
The willingness of entrepreneurs to take risks and organise production
Specialisation
The concentration by a worker, workers, firm, region or whole economy on a narrow range of goods and services
Division of Labour
The specialisation of Labour where the production process is broken down into separate tasks
Command economy
An economic system in which most resources are state owner and allocated centrally
Free market economy
An economic system whereby resources are allocated through the market forces of demand and supply
Mixed economy
An economic system in which resources are allocayed through a mixture of the market and direct public sector involvement
Opportunity cost
The cost of the next best alternative which is forgone when a choice is made
Production possibility curve
This shows the maximum quantities of different combination of output of 2 products, given current resources and the state of technology
Trade off
The calculation involved in deciding on whether to give up one good for another
