Economics Theme 1 Flashcards
1
Q
What is an opportunity cost?
A
The cost of the next best alternative foregone
2
Q
What does marginal mean?
A
The additional part
3
Q
Reasons for outward shifts of PPF?
A
Population increase
Technological improvement
4
Q
Reasons for inward shifts of PPF?
A
Natural disasters
War
5
Q
What are the functions of money?
A
Measure of value
Medium of exchange
Store of value
Deferred payment
6
Q
What are the alternative views of consumer behaviour?
A
Habitual behaviour
Other peoples influence
Computational weakeness
7
Q
What can shift the demand curve?
A
Changes in preference
Seasonal changes
Changes in income
Changes in prices for other goods
8
Q
A
