Flashcards in Foundations of Economics Deck (18)
a study of society and the way individuals interact within it.
a social science, and is the study of how society employs finite resources in order to satisfy infinite wants.
the study of individual economic units such as households and firms.
the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
based on facts or evidence so can be proven or disproved using a scientific approach.
based on opinions and value judgements.
all other things being equal.
the result of resources being limited, whereas wants are unlimited.
Factors of production
the resources necessary to create goods and services in an economy.
the gift of nature, everything on, under, above or in the land/sea.
the human component of the production of a good.
the satisfaction gained from the consumption of a product.
the cost of the next best alternative forgone.
something which is not scarce, has no opportunity cost and therefore no price.
something which is scarce and therefore has an opportunity cost and price.
Production Possibility Curve
shows all the possible combinations of two goods/services that can be produced within an economy.
any man made goods that are used to produce other goods or services.