AS Economics: AQA: Key Terms- Basic Concepts

basic concepts

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The Basic Economic Problem

resources have to be allocated between competing uses because wants are infinite whilst resources are scarce

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choice

economic choices involve the alternative uses of scarce resources

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Economic Goods

goods which are scarce because their use has an opportunity cost 

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Free good

goods which are unlimited in supply and which therefore have no opportunity cost

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needs

the minimum which is necessary fir a person to survive as a human being

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opportunity cost

the benefits foregone of the next best alternative

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PPF

a curve which shows the maximum potential level of output of one good given a level of output for all other goods in the economy

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scarce resources

resources which are limited in supply so that choices have to be made about their uses

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wants

desires for the consumption of goods and services

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Comments

izzy

Report

lacks in detail

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