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Flashcards in Economics Deck (33):
1

Scarcity

Economic problem of having unlimited needs and wants , but limited resources available

2

Resources

Natural or man made materials that are used to fulfil our needs and wants. People are also considered resources

3

Economic resources (factors of production)

Land, labour, capital, entrepreneurship

4

Key concepts of economics and business (6)

Scarcity, making choices, specialisation and trade, interdependence, allocation and markets, economic performance and living standards

5

Economic decisions

Financial choices, business decisions, employment decisions and legal decisions

6

Specialisation

A term that refers to the way an individual, business or entire country can focus on the production of a particular good or service in order to develop a more efficient and competitive production process

7

Interdependence

A term that refers to the way we rely on others to satisfy our needs and wants

8

Allocation

The concept that refers to the way we distribute our scarce resources among producers and then distribute scarce goods or services among consumers

9

Market

The exchange of goods and services among buyers and sellers

10

Economic performance

Measurement of how well and economy is doing

11

Economic indicators

GDP, inflation, unemployment, productivity

12

Material living standards

Refer to our access to physical goods and services

13

Non-material living standards

Include things that contribute to our happiness (freedom, low crime, etc)

14

GDP

A measure of the total value of final goods and services produced in a country over a year

15

Gross (in GDP)

Total figure before depreciation (deductions are not taken into account)

16

Domestic (in GDP)

Within a country

17

Product (in GDP)

Final goods and services

18

Recession

Economic growth falls for two or more quarters in a row

19

Depression

An 'extreme' recession, lasting two or more years

20

Inflation

Increase in the general level of prices paid for goods and services over a certain period of time

21

CPI

The way the ABS measures inflation

22

Interest rates

The price of 'borrowing' money

23

Unemployment rate

The percentage of people in the labour force who are unemployed

24

Labour force

Employed (working at least 1 hour a week) + unemployed (ready to start work and taking advice steps to find a job)

25

Frictional unemployment

Created by movement between jobs/in or out of training, etc

26

Cyclical unemployment

Relating to level of demand in the economy at the time.

27

Seasonal unemployment

Those who are temporarily unemployed due to their work not being consistent through the year

28

Structural unemployment

Changing priorities/focus of an economy. Industries decline, while others rise. New technologies replace workers, but create other opportunities.

29

Hidden unemployment

Those who’ve given up even looking for a job

30

OECD

Organisation for Economic Co-operation and Development

31

Productivity

Measures what can be produced (output) from a given amount of resources (input)

32

Labour productivity

Measures the amount of goods and services that a worker produces in a given amount of time

33

Capital productivity

Measures the amount of goods and services that can be produced using a fixed amount of capital in a given amount of time