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Description
Flashcards by aimiliaeirinix, updated more than 1 year ago
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Created by aimiliaeirinix
about 11 years ago
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| Question | Answer |
| Needs | The minimum that is necessary for a person to survive as a human being. |
| Wants | Desires for consumption of goods and services above and beyond our needs |
| Land | The natural economic resource provided by the earth |
| Labour | It is the workforce of the economy, The human input into the production process. |
| Capital | The man made economic resource used to produce other goods and services. |
| Enterprise/ Entrepreneurship | Entrepreneurs are individuals who organise the other factors of production. They are the ones who display skills of enterprise. |
| Factors of production | Resources available for the production process. They can be classified into Land, Labour, Capital and Enterprise. |
| Scarcity | Resources which are limited in supply are scarce. |
| Oppurtunity cost | The next best alternative foregone (given up). |
| Free goods | Goods which are unlimited in supply. |
| Economic goods | Goods which are scarce and have an oppurtunity cost in consumption. |
| Command (or planned) economy | An economic system where government, through planning, allocates resources in society. |
| Free market economy | An economic system where resources are allocated by the market mechanism (forces of demand and supply). |
| Mixed economy | An economy where some resources are allocated by the market mechanism (forces of demand and supply) and others are allocated by the government. |
| Production possibility curve | A curve that shows the maximum potential output levels of two types of goods and services in the economy. |
| Value judgement | An opinion based on the opinion that cannot be tested by facts. |
| Positive statement | A statement which can be supported or refuted by evidence. |
| Normative statement | A statement which cannot be supported or tested because it is a value judgement. |
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