Economics AS Definitions 3.0 / 5 based on 1 rating ? EconomicsASOCR Created by: Victoria MooreCreated on: 24-09-12 17:26 Capital Man-made aids to production to create further wealth and output. 1 of 14 Division of Labour The specialisation of labour where the production process is broken down into separate tasks. 2 of 14 Economic Efficiency Where both allocation and productive efficiency are achieved. 3 of 14 Economic Problem How to allocate scarce resources among alternative uses. 4 of 14 Entrepreneurship The willingness to take a risk and organize production in hope of making profit. 5 of 14 Free Market Mechanism The system by which the market focuses on supply and demand to determine prices and the decision is made by the consumers and firms. 6 of 14 Labour The quantity and quality of human resources both mental and physical in the production on goods and services. 7 of 14 Land Natural resources in an economy used in production. 8 of 14 Market An arrangement that brings buyers into contact with sellers. 9 of 14 Opportunity Cost The cost of the next best alternate use of the resources which is foregone when a choice is made. 10 of 14 Production Possibility Curve/Frontier This shoes the maximum quantities of different combinations of outputs of two products given current resources and the state of technology. 11 of 14 Productive Effiency Where production takes place using the least amount of scarce resources. 12 of 14 Scarcity A situation where there are insufficient resources to meet all wants. 13 of 14 Specialisation The concentration by a worker or workers, firm, region or whole economy on a narrow range of goods and services. 14 of 14
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