Definitions CC1

Question 1

a want

Answer 1

desirable but not essential to survival

Question 2

a need

Answer 2

essential for survival

Question 3

goods

Answer 3

tangible items

Question 4

services

Answer 4

activites that others do for you

Question 5

renewable resources

Answer 5

replenished by natural process

Question 6

non-renewable resources

Answer 6

not replaced naturally

Question 7

opportunity cost

Answer 7

measures value of the next best alternative use of resources foregone

Question 8

free good

Answer 8

a good that is not scarce, is in unlimited supply and has no opportunity cost to society

Question 9

basic economic problem

Answer 9

issue of scarcity and how best to produce and distribute these scare resources

Question 10

imperfect factor substitutability

Answer 10

when resources are better suited to making one item than another

Question 11

specialisation

Answer 11

individuals/firms/regions/countries focus on a particular product or task

Question 12

division of labour

Answer 12

specialisation of workers

production of a good broken up into separate tasks

Question 13

productivity

Answer 13

output per unit of input employed over a given time period

Question 14

labour productivity

Answer 14

output per worker per time period

Question 15

capital productivity

Answer 15

output per unit of capital employed per time period

Question 16

market

Answer 16

any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services

Question 17

economic system

Answer 17

complex network of individuals, organisations and institutions and their social and legal interrelationships

Question 18

ceteris paribus

Answer 18

all other things being equal/remaining constant

Question 19

positive statement

Answer 19

statement of fact which can be tested by looking at evidence and either proved or refuted

Question 20

normative statement

Answer 20

statement which cannot be proved or tested, value judgement