U2 Vocabulary
Spell "替代品"
substitute
Define the basic economic problem.
The basic economic problem is scarcity, which means limited resources cannot satisfy unlimited wants.
What is the difference between capital goods and consumer goods?
Capital goods are used for production of other G&S, while consumer goods are purchased by households for their own satisfaction.
Spell "补贴"
subsidy
Define labour.
Human resources including mental and physical efforts.
What is the difference between free goods and economic goods?
Free goods do not require resources to produce and so do not have O.C.
Economic goods require resources to produce and so have O.C.
Spell "烈酒"
alcohol
Define opportunity cost.
Opportunity cost is the next best alternative forgone.
Explain one factor that may increase geographical mobility of labour.
Cheap cost of relocation such as affordable housing in different areas.
Spell "香烟"
cigarette
Define the production possibility curve.
It is a curve that shows the maximum output combinations of two goods or services that can be produced with existing resources and technology being fully and efficiently used.
Why is PPC bowed outwards?
Increasing opportunity cost.