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8 Cards in this Set
- Front
- Back
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Basic Economic Problem |
How to allocate scarce resources to satisfy unlimited needs and wants |
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Economic Agents |
Households, Firms that operate privately in the economy, the government |
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Free Goods |
Goods that are unlimited in supply |
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Needs |
Goods that are essential for survival |
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Services |
Non-physical items (eg. haircuts, Internet provider, public transport) |
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Wants |
Goods and services not essential for survival but are demanded by economic agents |
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Opportunity Cost |
The cost of the next best opportunity foregone when making a decision |
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Production Possibility Curve |
Represents the maximum amount of goods & services which can be produced in an economy |
