Studied by 4 people
Emigration
________: large numbers of highly skilled and qualified workers move overseas, reducing output.
Sales managers
________ may attempt to sell as much as possible individually, thus selling larger quantities and lowering prices, making profits negative.
PPC
When a point moves along the ________, an opportunity cost occurs because you could be producing a different amount of something else and get more of it.
Weather
________: droughts reduce agricultural capacity, reducing output.
Efficiency
Improved ________: new production methods developed, increasing output.
opportunity cost
The ________ is a sacrifice made when making a choice.
Demand Curve
demand can be shown graphically, on the _____________.
New Resources
________: some nations may find more resources, so they can produce more, thus increasing output.
New Technology
________: ________ is faster and more reliable in production, thus causing more output.
PPC
When the ________ shifts inwards, it means that there is negative economic growth.
Demand
________ is the amount of a good which is bought at given prices over periods of time.
Improved Efficiency
new production methods developed, increasing output
Education and Training
economy becomes more productive as the proportion of educated workers increases as they can comprehend tasks faster and increase output
New Resources
some nations may find more resources, so they can produce more, thus increasing output
Resource Depletion
running out of resources, reducing output
Weather
droughts reduce agricultural capacity, reducing output
Emigration
large numbers of highly skilled and qualified workers move overseas, reducing output
Wars and conflict
less production availability as fewer resources, reducing output
Influenced
consumers may be influenced by people such as friends or parents and adopt their buying habits
Demographic Changes
an example of a demographic change is an ageing population, where there is an increase in demand for retirement homes and holidays for the elderly
Advertising
firms may attempt to influence demand for their products through advertising and other forms of promotion
Income
when disposable income rises, demand for goods rises
Fashion and tastes
demand rises for things which are more fashionable and attractive at the time, however, these tastes change over time
Price of substitutes
a substitute good is a good which is bought as an alternative to another for the same function
Price of complements
a complementary good is a good which is purchased together with another good because it is consumed with that other good
The Economic Problem
all countries have finite resources, yet we have unlimited wants
An Economist's Questions (3)
What to produce? How to produce? For whom to produce?
capital goods
goods purchased by firms to produce other goods
consumer goods
goods purchased by households with the intention of using them
economic growth
increase in the level of output by a nation
reasons for economic growth
New Technology, Improved Efficiency, Education and Training, New Resources
reasons for negative economic growth
Resource Depletion, Weather, Emigration, Wars and conflict
economic assumptions (2)
Consumers aim to maximise benefits, Businesses aim to maximise their profits
why might consumers not maximise benefits
calculation difficulty
habits
influenced
inadequate information
they cannot make balanced choices
why might producers not maximise benefits
Sales managers may attempt to sell as much as possible individually, Alternative business objectives, Enterprises operating as charities, Social Enterprises, don't have access to all of the information
Effective demand
how much would be bought at any given price
factors affecting demand
Demographic Changes, advertising, income, fashion/tastes, substitute price, complement price
opportunity cost
consumer economic assumption
They will buy the cheapest product out of products of the same quality
They will buy the highest quality product out of products at the same price
business economic assumption
They will buy the cheapest resources out of resources at the same price
They will choose the highest price that the market can stand to maximise revenue and profit
demand
amount of a good which is bought at given prices over periods of time
relationship between price and demand
inverse
Note 
Flashcard (32)