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16 Cards in this Set

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