Scarcity and Choice Keywords

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Scarcity
A situation that arises because people have unlimited wants in the face of limited resources
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Opportunity Cost
The next best alternative foregone
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Factors of Production
Resourses used in the production process; inputs into production, including labour, capital, land 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 down into a sequence of stages, and workers are assigned to particular stages
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Market
A set of arramgements that allows transactions to take place
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Microeconomics
The study of economic decisions taken by economic agents, including households and firms
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Macroeconomics
The study of interrelationships between economic variables at an aggregate (economy-wide) level
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Positive statement
A statement involving a value judgement that is about what ought to be
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Other cards in this set

Card 2

Front

Opportunity Cost

Back

The next best alternative foregone

Card 3

Front

Factors of Production

Back

Preview of the front of card 3

Card 4

Front

Model

Back

Preview of the front of card 4

Card 5

Front

Production possibility curve (PPC)

Back

Preview of the front of card 5
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