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scarcity
a situation that arises because people have unlimited wants in the face of limited resources
economic goods
goods that are scarce
free goods
goods such as the earths atmosphere that are not normally regarded as being scarce
poverty
a situation in which individuals lack the basic necessities of life of have low incomes relative to their fellow citizens
firm (business)
an organisation that produces output (goods or services)
positive statement
a statement about what is, i.e. about facts
normative statement
a statement involving a value judgement about what ought to be
value judgement
a statement based on your opinion or beliefs, rather than facts
factors of production
resources used in the production process, or inputs into production, including labour, capital, land and enterprise
opportunity cost
in decision making, the value of the next best alternative forgone
production possibility curve (PPC)
a curve showing the maximum combinations of goods and services that can be produced in a set period of time given available resources
trade-off
a situation in which the choice of one alternative requires that sacrifice of another
capital goods
goods used as part of the production process, such as machinery or factory buildings
consumer goods
goods produced for present use (consumption)
long-run economic growth
an expansion in the productive capacity of the economy
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Flashcard (121)