Introducing Economics Key Words

Scarcity:-a situation that arises when people have unlimited wants and there are limited resources.

Opportunity Cost:-in decision making, the value of the next best alternative that could be chosen.

Market Economy:-an economy where market forces are allowed to guide the allocation of resources.

Centrally Planned Economy:-an economy which makes decisions on resource allocation that are guided by the state.

Mixed Economy:-an economy in which resources are allocated partly through price signals and partly on the basis of intervention by the state.

Factors of Production:-resources used in the production process; inputs into production in particular including labour, capital and land.

Sustainable development:- "development which meets the needs…