Economics Definitions

HideShow resource information
Positive Statement
A statement that can be tested with data and confirmed as either true or false.
1 of 15
Normative Statement
A statement that cannot be tested and contains a value judgement.
2 of 15
Opportunity cost
The loss of value of the next best alternative forgone
3 of 15
PPF
the curve showing the maximum combinations of goods or services that can be produced in a given period with the current level of available resources.
4 of 15
Free Market Economy
An economy in which market forces guide the allocation of resources and involved no government control
5 of 15
Centrally Planned / Controlled Economy
An economy in which the government entirely undertakes the role of allocating and distributing resources.
6 of 15
Mixed Economy
A combination of A free market and centrally planned economy
7 of 15
Factors Of production
the 4 factors which affect rate/efficiency of production. Capital, Enterprise, Land and Labour
8 of 15
Sustainable Development
development which meets the needs of the present without compromising the ability of future generations to meet their own needs
9 of 15
Economic Growth
The expansion of the productive capacity of the economy
10 of 15
Division Of Labour
A process in which production is broken down into separate stages and workers are each assigned a particular stage
11 of 15
Gross domestic product (GDP)
A measure of the economic activity carried out in an economy over a period
12 of 15
Consumer Surplus
The difference between what the consumer is willing to pay compared to what they actually pay
13 of 15
Producer Surplus
The difference between what the firms are willing to sell for compared to what they actually sell for
14 of 15
Price Mechanism
The system in which the price is determined by the supply/demand for a good, and price will be an incentive to ration goods
15 of 15

Other cards in this set

Card 2

Front

Normative Statement

Back

A statement that cannot be tested and contains a value judgement.

Card 3

Front

Opportunity cost

Back

Preview of the front of card 3

Card 4

Front

PPF

Back

Preview of the front of card 4

Card 5

Front

Free Market Economy

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Market Failure resources »