A situation that arises because people have unlimited wants in the face of limited resources
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Opportunity Cost
In decision making, the value of the next best alternative forgone
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Factors of Production
Resources used in the production process; inputs into production, including labour, land, capital and entrepreneurship
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Model
A simplified representation of reality used to provide insight into economic decisions and events
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Production Possibility Curve (PPC)
A curve showing the maximum combinations of goods or services that can be produced in a set period of time given available resources
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Economic Growth
An expansion in the productive capacity of the economy
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Gross Domestic Product (GDP)
A measure of the economic activity carried out in an economy during a period
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Division of Labour
A process whereby the production procedure is broken into a sequence of stages, and workers are assigned to particular stages
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Market
A set of arrangements that allows transactions to take place
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Microeconomics
The study of economic decisions taken by individual economic agents, including households and firms
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Macroeconomics
The study of the interrelationships between economic variables at an aggregate (economy-wide) level
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Positive Statement
A statement about what "is", i.e., facts
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Normative Statement
A statement involving a value judgement that is about what ought to be
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Specialisation
A method of production where a business, area or economy focuses on the production of a limited scope of products or services to gain greater degrees of productive efficiency within an overall system
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Other cards in this set
Card 2
Front
In decision making, the value of the next best alternative forgone
Back
Opportunity Cost
Card 3
Front
Resources used in the production process; inputs into production, including labour, land, capital and entrepreneurship
Back
Card 4
Front
A simplified representation of reality used to provide insight into economic decisions and events
Back
Card 5
Front
A curve showing the maximum combinations of goods or services that can be produced in a set period of time given available resources
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