Markets in Action - Reasons for individuals, organisations and societies having to make choices 4.0 / 5 based on 1 rating ? EconomicsCompetitive marketsASOCR Created by: Tunde OsunmakindeCreated on: 16-11-12 14:57 Economics The study of how to allocate scarce resources in the most effective way 1 of 38 Economic Problem How to allocate scarce resources among alternative uses. 2 of 38 Household Group of people whose spending decisions are connected 3 of 38 Microeconomics The study of how households and firms make decisions in markets 4 of 38 Macroeconomics The study of isues that affect economies as a whole 5 of 38 Model A simplified view of reality that is used by economists as a means of explaining economic relationships 6 of 38 Factor of production the resource inputs that are available in an economy for the production of goods and services. 7 of 38 Goods tangible products, i.e. products that can be seen and touched, such as cars , food and washing machines. 8 of 38 Services intangible products, ie.e. products that cannot be seen or touched, such as banking , beauty therapy and insurance. 9 of 38 Land Natural resources in an economy. 10 of 38 Labour The quantity and quality of human resources 11 of 38 Capital Man-made aids to production. 12 of 38 Entrepreneurship The willingness of an entrepreneur to take risks and organise production 13 of 38 Entrepreneur Someone who bears the risks of the business and who organises production. 14 of 38 Factor Endowment The stock of factors of production 15 of 38 Production The output of goods and services 16 of 38 Want Anything you would like, irrespective of whether you have the resources to purchase it. 17 of 38 Scarcity A situation where there are insufficient resources to meet all wants 18 of 38 Choice The selection of appropriate alternatives 19 of 38 Opportunity cost The cost of the (next) beswt alternative which is foregone when a choice is made. 20 of 38 Specialisation The concentration by a worker or workers, firm, region or whole economy on a narrow range of goods and services. 21 of 38 Exchange The process by which goods and services are traded. 22 of 38 Subsidy A payment by a governing body to encourage the production or sonsumption of a product. 23 of 38 Division of Labour The specialisation of labour where the production process is broken down into seperate tasks. 24 of 38 Productivity Output, or production of a good or service per worker. 25 of 38 Production possibility curve This shows the maximum quantities of different combinations of output of two products, given current resources and the state of technology. 26 of 38 Developed economy An economy with a high level of income per head 27 of 38 Developing economy an economy with a relatively low level of income per head. 28 of 38 Trade-off The caluculation involved in deciding on whether to give up one good for another. 29 of 38 Economic growth Change in the productive potential of an economy. 30 of 38 Productive potential The maximum output that an economy is capable of producing. 31 of 38 Economic system The way in whihc production is organised in a country or group of countries 32 of 38 Market economy an economic system whereby resources are allocated through the market forces of demand and supply. 33 of 38 Price System A method of allocating resources by the free movement of prices. 34 of 38 Supply The quantity of a product that producers are willing and able to provide at different market prices over a period of time. 35 of 38 Demand The quantity of a product that consumers are able and willing to purchase at various prices over a period of time. 36 of 38 Command Economy an economic system in which most resources are state owned and also allocatred centrally 37 of 38 Mixed Economy An economic system in which resources are allocated through a mixture of the market and direct public sector involvement. 38 of 38
Edexcel Economics Unit 1 Competitive Markets: How they work and why they fail 5.0 / 5 based on 1 rating Teacher recommended
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