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16 Cards in this Set
- Front
- Back
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aggregate supply
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The total supply of planned production for an entire economy
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Supply
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The entire elationship between the quantity supplied of a good or service and its price
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Production
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The conversion of natural, human and capital resources into goods and services
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Equilibrium
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Where there is neither shortage nor excess in the market
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Wants
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The unlimited desires or wishes that people have for goods and services
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Factors of Production
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Land
Capital Labour Enterprise |
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Free Enterprise Economy
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Private business can obtain resources, organise resources and sell finished products any way they choose
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Needs
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Required necessities of life
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Income
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Rewards received for service
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GDP
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A measurement of a nations income generated within its own borders
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Planned economy
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Centralised planning, usually associated with a communist system. State control is an important feature
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Collective wants
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The entire range of physical goods demanded by a population
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Economic Problem
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Supplying infinite wants with a limited resource base
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Traditional Economy
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Associated with primitive methods of production, often rurally based. Limited success of the market system.
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Opportunity Costs
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The cost of any activity measured in terms of the best alternative that is not chosen
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Production Possibility Frontier
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The boundary between attainable and unattainable levels of production
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