economics 0.0 / 5 ? Economicsthe nature of economicsA2/A-levelEdexcel Created by: mericCreated on: 08-04-16 11:56 production possibility frontier a curve that shows the maximum potential output for all other goods in the economy using all the available resources 1 of 13 a positive statement a statement that can be verified by resorting to fact or further investigation 2 of 13 normative statement A statement which contains a value judgement and CANNOT be verified by resorting to fact or further investigation 3 of 13 specialisation The production of a limited range of goods by an individual, firm or country in cooperation with others to complete a full range of goods 4 of 13 opportunity cost the cost of any choice in terms of the next best alternative forgone 5 of 13 scarcity there are finite resources compared to infinite human wants, so choices have to be made about how to use those resources 6 of 13 renewable resources a resource whose stock level can be replenished naturally over a period of time 7 of 13 non-renewable resources a resource whose stock level decreases over time, as it is consumed 8 of 13 consumer good a good, that directly provides utility to consumers. it is wanted for the satisfaction that it gives 9 of 13 capital good a good, that is used to produce consumer goods or services and is wanted for the consumer goods and services it can produce 10 of 13 money an asset that is acceptable for exchange in payment for goods and services or debt 11 of 13 free market economy an economic system where all resources are allocated through the market forces of supply and demand rather than through government intervention 12 of 13 command economy an economic system where all resources are allocated by the government 13 of 13
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