Micro 1.4 0.0 / 5 ? EconomicsScarcity, Choice and the Allocation of ResourcesA2/A-levelAQA Created by: neve.whinnCreated on: 05-03-20 11:28 What is the basic economic problem? Scarcity. 1 of 17 What is scarcity? Economic resources are limited relative to society's wants. 2 of 17 What must be made when deciding how to allocate resources? Choices. 3 of 17 What are 3 economic questions to be considered when making choices? What should be produced and in what quantities? How should goods and services be produced? To whom should goods and services be allocated? 4 of 17 What are consumer goods? Goods that give satisfaction to consumers. 5 of 17 What are capital goods? Goods that are used to produce other goods. 6 of 17 What is labour-intensive production? A high proportion of human capital is used compared to capital. 7 of 17 What is capital-intensive production? A high proportion of capital is used compared to human capital. 8 of 17 What is the free market/capitalist economy? Decisions are made solely by the interactions of consumers and firms, with no government intervention. 9 of 17 What is the command/centrally planned economy? Decisions are made solely by the planning department of governments.. 10 of 17 What is the concept of opportunity cost? In making any choice regarding how to allocate resources, something must be given up, i.e. scarce resources have competing uses. 11 of 17 What happens when someone chooses one use? The next best alternative use is forgone. 12 of 17 What are economic goods? Goods that use up scarce economic resources in their production. 13 of 17 What do economic goods include? Most consumer goods. 14 of 17 How do economic goods have an opportunity cost? In their consumption. 15 of 17 What are free goods? Goods that are unlimited in their supply and availability. 16 of 17 What is the opportunity cost of consuming free goods? Zero, because they do not use up scarce resources. 17 of 17
AQA Unit 3 Economics: Business Economics and the Distribution of Income 5.0 / 5 based on 1 rating Teacher recommended
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