Economics Definitions 1

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  • Created by: CalumOC
  • Created on: 25-02-14 16:21
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  • Economics definitions (chapter 1)
    • Economic problem
      • How to allocate scarce resources among alternative uses.
    • Factor of production
      • The recourse inputs that are available in an economy for the production of goods and services.
    • Opportunity cost
      • The cost of the (next) best alternative which is foregone when a choice is made.
    • Specialisation
      • The concentration by a worker or workers, firm, region or whole economy on a narrow range of goods and services.
    • Division of labour
      • The specialization of labour where the production process is broken down into separate tasks.
    • Trade-off
      • The calculation involved deciding on whether to give up one good for another.
    • Economic Growth
      • Change in the productive potential of an economy.
    • Market Economy
      • an economic system whereby resources are allocated through the market forces of demand and supply.
    • Economic System.
      • The way in which production is organised in a country of a group of country's.
    • Price system
      • A method of allocating resources by the free movement of prices.
    • Supply
      • The quantity of a product that producers are willing and able to provide at different market prices over a period of time.
    • Demand
      • The quantity of a product that consumers are able and willing to purchase at various prices over a period of time.
    • Command economy
      • An economic system in which most resources are state owned and also allocated centrally.
    • Mixed Economy
      • An economic system in which resources are allocated through a mixture of the market and direct public sector investment.
  • The cost of the (next) best alternative which is foregone when a choice is made.

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