Markets in Action: the reasons for individuals, organisations and societies having to make choices

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  • Created by: Ben
  • Created on: 05-11-12 20:42
The study of how to allocate scarce resources in the most effective way.
Economics
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Group of people whose spending decisions are connected.
Household
2 of 38
How to allocate scarce resources among alternative uses.
EconomicProblem
3 of 38
The study of how households and firms make decisions in markets.
Microeconomics
4 of 38
A simplified view of the reality that is used by economists as a means of explaining economic relationships.
Model
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The study of issues that affect economies as a whole.
Macroeconomics
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Tangible products, i.e. products that can be seen and touched.
Goods
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The resource inputs that are avaliable in an economyfor the production of goods and services.
Factorofproduction
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Natural resources in an economy.
Land
9 of 38
Intangible products, i.e. products that cannot be seen or touched.
Services
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The quantity and quality of human resources.
Labour
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The willingness of an entrepreneur to take risks and organise production.
Entrepreneurship
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Man-made aids to production.
Capital
13 of 38
Someone who bears the risks of the business and who organises production.
Entrepreneur
14 of 38
The stock of factors of production.
Factorendowment
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Anything you would like, irrespective of whether you have the resources to purchase it.
Want
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The output of goods and services.
Production
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The selection of appropriate alternatives.
Choice
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A situation where there are insufficient resources to meet all wants.
Scarcity
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The cost of the next best alternative, which is foregone when a choice is made.
OpportunityCost
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The concentration by a worker or workers, firm, or whole economy on a narrow range of goods and services.
Specialisation
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The process by which goods and services are traded.
Exchange
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The specialisation of labour where production is broken down into separate tasks.
Divisionoflabour
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A payment by a governing body to encourage the production or consumption of a product.
Subsidy
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Output, or production of a good or service, per worker.
Productivity
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An economy with a high level of income per head.
Developedeconomy
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this shows maximum quantities of different combinations of output of two products, given current resources and the state of technology.
productionpossibilitycurve
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An economy with a relatively low level of income per head.
Developingeconomy
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The calculation involved in deciding on whether to give up one good for another.
Tradeoff
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The maximum output that an economy is capable of producing.
productivepotential
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The way in which production is organised in a country or group of countries.
economicsystem
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Change in the productive potential of an economy.
economicgrowth
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A method of allocating resources by the free movement of prices.
pricesystem
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An economic system whereby resources are allocated through the market forces of demand and supply.
marketeconomy
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The quantity of a product that consumers are able and willing to purchase at various prices over a period of time.
demand
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The quantity of a product that producers are willing and able to provide at different market prices over a period of time.
supply
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An economic system in which resources are allocated through a mixture of the market and direct public sector involvement.
mixedeconomy
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An economic system in which most resources are state owned and also allocated centrally.
commandeconomy
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Other cards in this set

Card 2

Front

Group of people whose spending decisions are connected.

Back

Household

Card 3

Front

How to allocate scarce resources among alternative uses.

Back

Preview of the front of card 3

Card 4

Front

The study of how households and firms make decisions in markets.

Back

Preview of the front of card 4

Card 5

Front

A simplified view of the reality that is used by economists as a means of explaining economic relationships.

Back

Preview of the front of card 5
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