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Flashcards in 1. Introduction to Economics Deck (11):
1

Economics

A social science that studies how individuals, firms and governments make choices on allocating scarce resources to satisfy unlimited wants

2

Economic problem

1. wants are unlimited
2. resources are limited
3. must choose which desire to satisfy

3

Wants

Materialistic desires of individuals or the community, which provide satisfaction and pleasure.

4

Opportunity cost

The opportunity cost of satisfying a want is the alternative want that we must forego.
What you give up/what you get

5

PPF

graphical representation/model of the OC

6

Capital goods

items that have not been produced for immediate consumption, but used for production of other goods

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subsidising

support (an organisation or activity) financially

8

good

a physical product that is tangible, and capable of being delivered to the purchaser

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service

intangible act that benefits us

10

Business cycle

the cyclical fluctuations in the general level of economic activity

11

GDP

value of final goods and services produced by a country over a period of time (i year)