724335
Description
Flashcards by Twidster0502, updated more than 1 year ago
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Created by Twidster0502
over 11 years ago
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| Question | Answer |
| Goods | Tangible Products e.g. CD |
| Services | Non-tangible products e.g. trip to the cinema |
| Economic Welfare | The benefit or satisfaction received by an individual or society from the allocation of resources |
| Opportunity Cost | The next best alternative given up when an economic decision is made |
| Economic Goods | Goods that are scarce and therefore have an opportunity cost |
| Free Goods | Goods that have no opportunity cost e.g. air |
| Factor Market | The market for the factors of production that make other goods and services e.g. raw materials |
| Renewable resources | Resources that are able to be replenished over time e.g. wood |
| Non renewable Resources | Resources that are not able to be replenished over a period of time e.g. oil |
| Profit | When total income or revenue for a firm is greater than total costs |
| Free Market Economy | A market where there is limited government involvement in providing goods and services |
| Production Possibility Boundary |
Image:
PPF_graph.gif (image/gif)
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| Productive Efficiency | When a firm operates at minimum average total costs, producing the max. possible output from inputs |
| Allocative Efficiency | This is achieved when it is not possible to make anyone better off without making someone worse off |
| Productivity | A measure of efficiency, the ratio of inputs to outputs. Most common; output per worker |
| Human Capital | The skills, abilities, motivation and knowledge of labour |
| Division of Labour | Breaking the production process down into a sequence of tasks, with workers assigned tasks |
| Specialisation | The production of a limited range of goods by and individual factor of production/firm/country |
| Value Judgements | Statements or opinions made that are not testable/cannot be verified (views of individual) |
| Normative Statement | Opinions that require value judgements to be made |
| Positive Statements | Statements that can be tested against real world data |
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