Scarcity and Choice Keywords 0.0 / 5 ? EconomicsScarcity and ChoiceA2/A-levelOCR Created by: TemidoyinOCreated on: 10-02-18 18:52 Scarcity A situation that arises because people have unlimited wants in the face of limited resources 1 of 12 Opportunity Cost The next best alternative foregone 2 of 12 Factors of Production Resourses used in the production process; inputs into production, including labour, capital, land and entrepreneurship 3 of 12 Model A simplified representation of reality used to provide insight into economic decisions and events 4 of 12 Production possibility curve (PPC) A curve showing the maximum combinations of goods or services that can be produced in a set period of time given available resources 5 of 12 Economic Growth An expansion in the productive capacity of the economy 6 of 12 Gross Domestic Product (GDP) A measure of the economic activity carried out in an economy during a period 7 of 12 Division of labour A process whereby, the production procedure is broken down into a sequence of stages, and workers are assigned to particular stages 8 of 12 Market A set of arramgements that allows transactions to take place 9 of 12 Microeconomics The study of economic decisions taken by economic agents, including households and firms 10 of 12 Macroeconomics The study of interrelationships between economic variables at an aggregate (economy-wide) level 11 of 12 Positive statement A statement involving a value judgement that is about what ought to be 12 of 12
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