Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
Scarcity |
A situation where there is not enough to satisfy everyone's wants |
|
|
Economic Problem |
Unlimited wants exceeds scarce resources |
|
|
Land |
Gifts of nature available for production |
|
|
Occupationally mobile |
Capable of changing use |
|
|
Geographically Immobile |
Incapable of moving from one location to another location |
|
|
Capital |
Human made goods used in production |
|
|
Labour |
Human Effort- both mental and physical, involved in producing goods and services |
|
|
Enterprise |
Willingness and ability to bear uncertain risks and to make decisions in a business |
|
|
Opportunity Cost |
The best alternative forgone |
|
|
Market Economy |
An economic system which relies on the process mechanism to allocate resources |
|
|
Market Supply |
Total supply of a product |
|
|
Equilibrium Price |
Where the quantity demanded of a product is equal to the quantity supplied |
|
|
Subsidy |
Payment to encourage the production or the consumption of the product |
|
|
Shortage |
A situation where demand exceeds supply |
|
|
Shortage |
A situation where demand exceeds supply |
|
|
Productive Efficiency |
A movement along the demand curve as a result of a fall in the price of the product |
|
|
Market Failure |
A situation where market forces do not result in an efficient outcome |
|
|
External Cost |
Harmful effects on the third party |
|
|
Social Benefits |
The total benefits arising from producing and consuming the produ |
|
|
Demerit Good |
Products that are more harmful for consumers than they realise and which have external cost |
|
|
Public Goods |
Goods that are non rival and non-excludable |
|
|
Government Failure |
When government intervention increases inefficiency |
