Factors of Production
Production Possibilities Curve
Basic Economic Terms
Circular Flow Diagram
Economic Systems
100
All natural resources (minerals and other raw materials)
What is Land ?
100
A measure of how well or how productively resources are used to achieve a goal.
What is Efficiency?
100
A lack of resources to meet all consumer wants.
What is Scarcity?
100
They are the owners of productive resources, which are the inputs firms need in order to produce goods and services.
What is are households?
100
The state allocates resources, and sets production targets and growth rates according to its own view of people's wants.
What is a Command Economy?
200
All man-made aids to production (machinery, equipment and so on).
What is Capital?
200
A diagram that shows the combination of two goods a country can make in a given time period with resource fully employed.
What is a Production Possibility frontier (PPF)?
200
A statement that concerns what "is", "was", or "will be", and contains no indication of approval or disapproval (what should be). These statements are testable - or, at least, it is possible to imagine facts that disprove them - but can be factually incorrect.
What is Positive Statements?
200
They acquire the inputs for production by paying households for their resources.
What is the firm?
200
A system where resources are owned by households: markets allocate resources through the price mechanism; and income depends upon the value of resources owned by an individual.
What is a Free Market economy?
300
A payment made for the use of an natural resource owned by someone else.
What is rent?
300
The decision to produce or consume a product involves giving up another product. The real cost of an action is the next best alternative forgone.
What is Opportunity cost?
300
Any good that is not scarce, and therefore has a zero opportunity cost.
What is a Free good?
300
The market where inputs are traded for either wages, rent or interest.
What is the factor market?
300
A society where resources are owned by both private individuals and the government.
What is a Mixed economy?
400
The reward for bearing uninsurable risks associated with production.
What is Profit?
400
When a nation is not achieving full employment of resources it is producing it is said to be inside the PPF.
What is inefficiency?
400
Is a Latin phrase, literally translated as "with other things the same," or "all other things being equal or held constant."
What is Ceteris Paribus?
400
The market where goods and services are traded for money.
What is the product market?
400
A french term that translates as "let it be'.
What is laissez-faire?
500
Are the resources that are necessary for production. They are usually classified into 4 different groups.
What is Factors of Production?
500
When a larger sacrifice of an alternative good caused by an increasingly greater production of another good in a firm or economy, where resources are already being fully and efficiently used. The PPF is bowed out from the origin.
What is increasing opportunity cost?
500
Study of a single factor of an economy - such as individuals, households, businesses, & industries - rather than an economy as a whole.
What is Microeconomics?
500
The person who undertake the risks of production in order to make a profit.
What is Entrepreneurship?
500
What to produce? How to produce it? Who should produce it? And how should the economy provide for growth?
What is Basic Economic questions?
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