Term 1

Question 1

Opportunity cost

Answer 1

The best alternative
opportunity forgone when a choice is made (often referred to as ‘real cost’ or ‘economic cost’)

Question 2

Productivity

Answer 2

a measure of the efficiency of production, expressed in terms of the rate of output per unit of inputs..

Question 3

Wants

Answer 3

things we desire because they give us satisfaction – various types of goods and services

Question 4

Needs

Answer 4

things that are essential for life in our society

Question 5

Economic growth

Answer 5

a sustained increase in
the productive capacity of an economy over
a specific period of time, usually indicated
by the increased availability of goods and
services in the economy