Insufficient resources to provide for unlimited human wants
1 of 14
What is the opportunity cost?
next best alternative forgone
2 of 14
What does CELL stand for in terms of factors of production
Capital,enterprise,land, labour
3 of 14
Can renewable stock be maintained over a period of time?
True
4 of 14
Can non renewable stock be maintained over a period of time?
False
5 of 14
What does a PPF show?
maximum potential level of output for 2 goods/ services that an economy can achieve when all it
6 of 14
Can a PPF demonstrate opportunity cost?
True
7 of 14
What does an outward shift in a PPF represent?
economic growth: increased quantity/qaulity of resources, training schemes, new technology
8 of 14
What does an inward shift in a PPF represent?
decreased economics growth: war/natural disaster where many resources are destroyed
9 of 14
What is specialisation?
when a firm/individual concentrates on producing a limited range of goods/services which if there is little demand can result in unemployment
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What is division of Labour?
individuals concentrating on one good or service which results in different tasks for each worker
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Are advantages of division of labour: you get highly skilled workers, capital equipment can be used continously, no time is wasted, no training involved and there is more choice of jobs?
True
12 of 14
What are disadvantages of division of labour?
there is boredom which results in high tunover of staff, it is easier to replace labour with machines, if there is a strike all production has to stop
13 of 14
positive statements include facts and can be backed up, normative statements are value judgements?
True
14 of 14
Other cards in this set
Card 2
Front
What is the opportunity cost?
Back
next best alternative forgone
Card 3
Front
What does CELL stand for in terms of factors of production
Back
Card 4
Front
Can renewable stock be maintained over a period of time?
Back
Card 5
Front
Can non renewable stock be maintained over a period of time?
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