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22 Cards in this Set
- Front
- Back
- 3rd side (hint)
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allocative efficiency |
Combination of products that best satisfies consumers' demands. |
combination |
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capital |
The human-made resource that is used to produce other products. |
who made it? for what? |
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consumer goods and services |
Products that are used to satisfy their wants and needs |
satisfy |
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enterprise |
The human resource of innovation & risk taking |
f.e. Invests to maybe make profit |
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factors of production |
Objects that can be used to produce goods and services. |
= Inputs |
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inputs |
Objects/entities that can be used to produce goods or services. |
= Factors of production |
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interest |
The payment made and the income received for the use of capital. |
slightly different than f.e. inputs or factors of production |
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labour |
Human physical and mental effort that can be used to produce goods and services. |
slightly different than inputs or factors of production. |
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land |
Any natural resource that can be used to produce goods and services. |
F.e. : The more production of cars increases, the less of any other item can be produced. |
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law of increasing costs |
As an economy's production level of any particular item increases, its per-unit cost of production rises. |
Economics in the big picture |
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macroeconomics |
The study of how the major components of an economy interact; it considers unemployment, inflation, interest rate policy, and the spending and taxation policies of government. |
Economics in a small picture |
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microeconomics |
The study of the outcomes of decisions by people and firms; it focuses on the supply and demand of goods, the cost of production and market structures. |
opinion/belief |
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normative statement |
A statement of opinion of belief that cannot be verified. |
f.e. : a) 3 hours Playstation vs 3 hours study? b) 1 1/2 h Playstation + 1 1/2 h study? |
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opportunity cost |
The value of the next-best alternative that is given up as a result of making a particular choice. |
positive = 100% true |
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positive statement |
A statement of fact that can be verified. |
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Production Possibilities Curve (PPC) |
A graphical representation of the various combinations of maximum output that can be produced from the available resources and technology. |
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productive efficiency |
The production of an output at the lowest possible average cost. |
What you earn |
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profit |
The income received from the activity of enterprise. |
f.e. Cost of a rented factory. |
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rent |
The payment made and the income received for the use of land. |
= factors of production/inputs |
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resources |
Physical or virtual entities that can be used to produce goods and services. |
How g & s will be produced |
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technology |
A method of production; the way which resources are combined to produce goods and services. |
Expense for one side/ income for the other side |
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wages |
The payment made and the income received for the use of labour. |
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