Term 2 Grade 10 2026

land, labour, capital, enterprise

The four factors of production

complementary goods

Products that are often paired or consumed jointly

substitute goods

Goods that satisfy the same want as another and are therefore bought as an alternative

normal goods

Products that increase in demand when people’s incomes increase

inferior goods

Products that decline in demand when people’s incomes increase

determinism

The philosophical belief that every decision made is predetermined by earlier events

libertarian free will

The philosophical belief that humans are capable of doing freely, voluntarily chosen actions.

principle of alternate possibilities

The philosophical idea that a choice is only “free” if the person making it could have decided otherwise

non-sequitur

A fallacy in which the conclusion is not supported by, or is completely unrelated to the premises

false alternative

A fallacy in which only one option is correct or good, and the other in incorrect or bad - there is no room for nuance

ad hominem

A fallacy in which instead of attacking the argument/position of the opponent, the aggressor attacks their character

straw man

A fallacy in which the opposing side’s argument is misrepresented with exaggeration/cherry-picking to make it easier to attack

appeal to authority

A fallacy in which someone uses their authority as a reason why they are correct, rather than logical reasoning and evidence

land

All things supplied by nature and used in the production of goods/services

labour

All human effort which goes into the production of goods/services

capital

Anything human-made used to produce goods/services

enterprise

Intitative involved in organising land, labour and capital which bares the risks involved

ceteris paribus

A phrase indicating that all other variables are kept constant - Latin for “all other things being equal”

production possibility frontier

This graph is a…

A

A point indicating that resources aren’t being used efficiently

X

A point representing a level of production impossible with current resources

D

A point indicating that an equal amount of bananas and mangos are being produced

C

A point indicating that more mangos are being produced than bananas

B

A point indicating that more bananas are being produced than mangos

opportunity cost

Any benefit you pass up by deciding on one option over another

free market economy

An economy with very limited government influence

demand

The quantity consumers are willing and able to buy at a given price

mixed economy

An economy with features of both command and free market economies - marginal government control

command economy

An economy controlled by the government

inverse relationship

a relationship in which when one variable increases, the other decreases

law of demand

A law of economics that states when the price of a good or service increases, consumer demand will decrease, and vice verse

supply

The quantity producers are willing and able to supply/offer at a given price

positive relationship

A relationship in which when one variable increases the other will also increase

law of supply

A law of economics that states when the price of a good or service increases, producers will supply more (with the same applying to decrease)