Microeconomics September Test

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  • Created by: Simone
  • Created on: 29-09-13 18:38
Economics
studies how individuals, firms and governments make choices on allocating scarce resources to satisfy their unlimited want
1 of 15
The Economic Problem
asserts that there is scarcity, or the finite resources available are insufficient to satisfy all human wants
2 of 15
Factors of Production
the inputs used in the production process of goods/services
3 of 15
Factor Incomes/Rewards
What you get in return for the use of your resource e.g. rent
4 of 15
PPC
shows the maximum combination of two goods in a time period given all resources are fully and efficiently used
5 of 15
Money
anything generally accepted my means of payment for the delivery of goods or for the settlement of debt
6 of 15
Functions of money:
used as a medium of exchange, a unit of account and a store of value
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Characteristics
Portable, Acceptable, Divisible, Durable, Limited, Extremely hard to forge, Recognisable
8 of 15
Exchange
process whereby goods or services are traded
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Specialisation
the concentration or workers, firms or economies on a narrow range of goods/services
10 of 15
Division of Labour
the production process is divided into individual operations each performed by specialised workers
11 of 15
Opportunity Cost
sacrifice, the cost of the next best alternative forgone
12 of 15
Market Economy
this economic systems allocates resources through the market factors of supply and demand
13 of 15
Consumer Goods
bought by individuals - durable or non-durable
14 of 15
Capital Goods
bought by businesses to be used in the production of other goods
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Other cards in this set

Card 2

Front

asserts that there is scarcity, or the finite resources available are insufficient to satisfy all human wants

Back

The Economic Problem

Card 3

Front

the inputs used in the production process of goods/services

Back

Preview of the back of card 3

Card 4

Front

What you get in return for the use of your resource e.g. rent

Back

Preview of the back of card 4

Card 5

Front

shows the maximum combination of two goods in a time period given all resources are fully and efficiently used

Back

Preview of the back of card 5
View more cards

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