Economics Part 2 Glossary

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Basic Economic Problem
The problem of allocation of a nation's scarce resources between competing uses that represent infinite wants and needs.
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Choice
Deciding between alternative uses of some resources
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Needs
Basic requirements for human survival
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Opportunity Cost
When choosing between different alternatives it is the benefit lost from the next best alternative
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Production Possibility Curve
A curve which shows the different combinations of two goods an economy can produce if all resources are used up
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Wants
People's desires for goods and services
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Market
When suppliers and consumers communicate and exchange goods and services for money
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Scarce (resource)
The amount of the resource available is limited
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Economy
A system that attempts to solve the basic economic problem
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Efficiency
Minimising costs and the uses of resources
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Public Sector
A sector of government organisations that provide goods and services in the economy
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Private Sector
A sector that provides the provisions of goods and services by businesses that are owned by individuals or groups individuals
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Merit Goods
Goods which are under-provided by the private sector
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Free Market Economy
A type of economy that relies least on public sector for the provisions of goods and services
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Command Economy
A type of economy that relies entirely on the public sector to choose, produce, and distribute goods and services. All resources belong to the government.
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Mixed Economy
A type of economy that relies on both the public sector and the private sector to provide goods and services
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Market Failure
Where markets lead to inefficiency
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Other cards in this set

Card 2

Front

Deciding between alternative uses of some resources

Back

Choice

Card 3

Front

Basic requirements for human survival

Back

Preview of the back of card 3

Card 4

Front

When choosing between different alternatives it is the benefit lost from the next best alternative

Back

Preview of the back of card 4

Card 5

Front

A curve which shows the different combinations of two goods an economy can produce if all resources are used up

Back

Preview of the back of card 5
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