Definitions CC1 Flashcards
a want
desirable but not essential to survival
a need
essential for survival
goods
tangible items
services
activites that others do for you
renewable resources
replenished by natural process
non-renewable resources
not replaced naturally
opportunity cost
measures value of the next best alternative use of resources foregone
free good
a good that is not scarce, is in unlimited supply and has no opportunity cost to society
basic economic problem
issue of scarcity and how best to produce and distribute these scare resources
imperfect factor substitutability
when resources are better suited to making one item than another
specialisation
individuals/firms/regions/countries focus on a particular product or task
division of labour
specialisation of workers
production of a good broken up into separate tasks
productivity
output per unit of input employed over a given time period
labour productivity
output per worker per time period
capital productivity
output per unit of capital employed per time period
market
any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services
economic system
complex network of individuals, organisations and institutions and their social and legal interrelationships
ceteris paribus
all other things being equal/remaining constant
positive statement
statement of fact which can be tested by looking at evidence and either proved or refuted
normative statement
statement which cannot be proved or tested, value judgement
