Economic Basics

BASICS OF ECONOMICS IN FLASHCARDS :D DIAGRAMS AND STUFF INCLUDED

Opportunity cost

The next best alternative given up when making a choice.

Demand

The quantity of a good or service that consumers are willing and able to buy at a given price in a given time period.

The basic economic problem

How to best use the limited resources to satisfy the unlimited wants of consumers

Demand

The quantity of a good or service that consumers are willing and able to buy at a given price in a given time period

Supply

The quantity of a good or service that producers are willing and able to supply at a given price in a given time period

Opportunity cost

The next best alternative given up when making a choice

Wants

The unlimited desire for anything the consumer wants to purchase, even if they arent currently able, e.g a pet clive

Needs

Something the consumer must have in order to survive, e.g food and water, economics lessons

Aggregate Demand

The total demand for goods and services produced within the economy over a period of time

Formula for Aggregate Demand

C + I + G + (X -M)

The factors of production

The four things a firm needs to be able to produce their products or provide their service

CELL

Capital, Enterprise, Land, Labour

Basic demand and supply diagram

Basic AD and AS diagram