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10 Cards in this Set
- Front
- Back
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Basic Economic Problem
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Resources have to be allocated between competing uses because wants are infinite whilst resources are scarce.
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Opportunity Cost
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The benefits forgone of the next best alternative.
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Production Possibility Frontier (transformation graph)
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A curve which shows the maximum potential level of output of one good given the level of output of all other goods in the economy.
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Scarce Resources
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Refers to resources which are limited in supply and decisions have to be made about their uses.
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Wants
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Desieres of the consumption of goods and services.
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Choice
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Econonic choices involve the alternative uses of scarce resources.
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Economic Goods
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Goods which are scarce because their use has an opportunity cost.
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Free Goods
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Goods which are unlimited in supply and therefore have no opportunity cost.
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Margin
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A point of possible charge
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Needs
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The minimum which is necessary for a person to survive as a human being.
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