Basic definitions 0.0 / 5 ? EconomicsdefinitionsASOCR Created by: katonacloudCreated on: 13-02-14 19:50 Scarcity A situation that exists where there are in sufficient resources to meet all wants 1 of 6 Economic problem How to allocate scare resources amongst alternative uses 2 of 6 Factor of production The resource inputs that are available in an economy for production of goods and services 3 of 6 Opportunity cost The cost of the (next) best alternative, which is foregone when a choice is made. 4 of 6 Market Where or when buyers and sellers meet to trade or exchange products 5 of 6 Specialisation The concentration by a worker or workers, firm, region or whole economy on a narrow range of goods and services. 6 of 6
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