Fundementals Flashcards
1
Q
The economic problem
A
Scarcity of resources and infinite wants
2
Q
What are economic agents
A
Those who decide on the allocation of resources and make choices
3
Q
The 4 economic resources
A
Land
Labour
Capital
Enterprise
4
Q
The 3 different economic systems
A
Planned economy
Capital / Free market economy
Mixed economy
5
Q
Utility
A
Satisfaction
6
Q
Categories of capital G&S
A
Working
Fixed
7
Q
Categories of consumer G&S
A
Durable
Non-durable
8
Q
Production possibility frontier (PPF)
A
It shows the maximum an economy can produce given its current level of resources and technology available
9
Q
Opportunity cost
A
The benefit lost from the next best alternative when making a decision
10
Q
Free goods
A
Goods with unlimited supply so there is no opportunity cost (e.g. air, water)
