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10 Cards in this Set

  • Front
  • Back

Scarcity

An excess of human wants and needs compared to the availability of resources available

Positive statement

Can be tested

Normative statement

Based on an opinion; cannot be tested

Specialisation

Production of a limited range of outputs by an individual, firms or economy, then trading to satisfy other wants and needs

Division of labour

When a workforce is divided into individual jobs to speed up a process

Opportunity cost

The benefit that would have been derived from the next best alternative foregone

PPF

Is the model of a simple economy producing two good using limited resources

Demand

The quantity of a good or service consumers are willing and able to buy at a given price over a period of time

Supply

The quantity of a good or service producers are willing and able to sell at a given price over a period of time

PED

Measures the proportion of responsiveness of demand to the proportionate change in price