Economics AS Definitions

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  • Created by: Rob
  • Created on: 09-05-13 10:25

Demand

The quantity of goods households are willing to buy in a market. At a given price and in a given period of time.

Supply

The quantity of goods firms are willing to sell in a market. At a given price and in a given period of time.

Macroeconomics

Examines the economy as a whole.

Microeconomics

Examines individual consumers, firms and markets in the economy.

Normative

Means an opinion that cannot be scientifically tested.

Positive statement

A statement that can be scientifically tested.

Economic Problem

Only a limited amount of resources are available to produce the unlimited quantity of goods and services people desire.

Consumer Good

A good which is used by consumers to meet their needs.

Capital Good

A good which is used to produce other goods, including consumer goods.

Technological Progress

Improves methods of producing existing goods and enables completely new types of good to be produced.

Opportunity cost

The cost of the next best alternative sacrificed.

Finite Resource

A resource which is scarce and runs out when used.

Free good

A good…

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