The Basic Economic Problem

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Capital
Goods/material that are used for the production of other items. Not consumed in their own right
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Consumption
Using up goods/services
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Consumer goods
Goods that are wanted because they provide satisfaction to their owner
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Demerit goods
Goods that are percieved to have a negative impact/effect on society
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Economy
Total Value of goods and services produced and exchanged within a country
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Enterprise
Risk taking and decision making in business
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Factors of production
What is needed to be able to produce g/s. Land, Labour, Capital and Enterprise
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Fixed Capital
Capital goods tht do not need replacing in the short term (machinery, tools and buildings
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Free goods
Goods that require no resources to make (wind)
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Goods
Items produced by the factors of production (usually for economic gain)
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Labour
The human effort required to produce something
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Land
The area used/built on and resources that are contained there
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Markets
Place where goods and services are exchanged (may be visible or invisible)
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Merit Goods
Goods that are percieved to provide postive externalities
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Needs
Requirements for continued existence
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Opportunity Cost
The sacrafice of the next best alternative
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Production possibility curve
a curve that represents the possible output if the factors of production are use efficeintly. Also known as the 'opportunity cost curve' as it can be used to show the opportunity cost of producing different products/quantities
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Public goods
Provided by the government (paid for through taxes) that everybody benefits from
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Resources
Items that are needed/useful for consumption or the production of other items
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Scarcity
Limited availabilty of resources, not enough to satisfy all wants
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Services
Something that fulfils a need that is not physical
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Wants
Luxuries
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Working Capital
Products that are used up in production (raw materials)
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Other cards in this set

Card 2

Front

Using up goods/services

Back

Consumption

Card 3

Front

Goods that are wanted because they provide satisfaction to their owner

Back

Preview of the back of card 3

Card 4

Front

Goods that are percieved to have a negative impact/effect on society

Back

Preview of the back of card 4

Card 5

Front

Total Value of goods and services produced and exchanged within a country

Back

Preview of the back of card 5
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