Definitions CC1 Flashcards Preview

Economics - Theme 1 > Definitions CC1 > Flashcards

Flashcards in Definitions CC1 Deck (20)
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1
Q

a want

A

desirable but not essential to survival

2
Q

a need

A

essential for survival

3
Q

goods

A

tangible items

4
Q

services

A

activites that others do for you

5
Q

renewable resources

A

replenished by natural process

6
Q

non-renewable resources

A

not replaced naturally

7
Q

opportunity cost

A

measures value of the next best alternative use of resources foregone

8
Q

free good

A

a good that is not scarce, is in unlimited supply and has no opportunity cost to society

9
Q

basic economic problem

A

issue of scarcity and how best to produce and distribute these scare resources

10
Q

imperfect factor substitutability

A

when resources are better suited to making one item than another

11
Q

specialisation

A

individuals/firms/regions/countries focus on a particular product or task

12
Q

division of labour

A

specialisation of workers

production of a good broken up into separate tasks

13
Q

productivity

A

output per unit of input employed over a given time period

14
Q

labour productivity

A

output per worker per time period

15
Q

capital productivity

A

output per unit of capital employed per time period

16
Q

market

A

any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services

17
Q

economic system

A

complex network of individuals, organisations and institutions and their social and legal interrelationships

18
Q

ceteris paribus

A

all other things being equal/remaining constant

19
Q

positive statement

A

statement of fact which can be tested by looking at evidence and either proved or refuted

20
Q

normative statement

A

statement which cannot be proved or tested, value judgement