ECONOMICS UNIT 3 AOS 1 Flashcards
1
Q
Relative scarcity
A
Limited rescources are unable to meet the unlimited wants and needs of society
2
Q
Types of rescources
A
Land (natural)
Labour (Human effort)
Capital (Anything human made and used to produce goods and services)
3
Q
Opportunity cost
A
Value of the (next best) opportunity that is forgone (given up) in making a decision under the influence of realtive scarcity
4
Q
Three basic economic questions
A
Who is to produce?
For whom to produce?
How to produce?
5
Q
Efficiency
A
A measure of how we use our scarce rescources
6
Q
Productive effciency
A
Maximum output
Assume: no wastage of rescources
Firms are producing as lowest cost
7
Q
A
8
Q
A
9
Q
A
10
Q
A
