Edexcel Economics AS-level - 1.1 Scarcity Vocabulary

A collection of vocabulary flashcards defining key terms related to scarcity, opportunity cost, renewable and non-renewable resources, and economic agents based on the Edexcel Economics AS-level Unit 1 topic 1.1 notes.

Scarcity

The basic economic problem arising because human wants are unlimited while resources are finite, requiring optimal choices to be made regarding resource allocation.

Opportunity Cost

The value of the next best alternative forgone when an economic choice is made.

Economic Agents

Decision-makers in an economy—specifically consumers, producers, and governments—who must make choices on how to allocate finite resources.

Renewable Resources

Resources that can be replenished over a period of time, allowing the stock level to be maintained as long as the rate of consumption is less than the rate of replenishment.

Non-renewable Resources

Resources that cannot be renewed and whose stock level decreases over time as they are consumed, such as coal, oil, and natural gas.

Worldwide Fund for Nature Claim

The claim that two planets will be required to meet global demand by the year $2050$ if resources continue to be consumed faster than the planet can replace them.

Opportunity Cost of Keeping an Asset Example

For a car bought for $\text{£}15,000$ that depreciates by $\text{£}5,000$ after $5\,\text{years}$, the opportunity cost of keeping the car is $\text{£}5,000$ (the amount that could be gained by selling it), regardless of the starting price.