The foundations of economics (Factors of production (Labour (The physical…
The foundations of economics
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
The act of selecting among the alternatives
The next best alternative foregone when an economic decision is made
The basic economic problem
How should things be produced?
What should be produced and in what quantities?
Who should things be produced for?
Factors of production
The physical and mental human effort used in the production process
all natural resources used to produce goods and services
the process of starting, organizing, managing, and assuming the responsibility for a business
previously manufactured goods used to make other goods and services
Production Possibilities Curve/Frontier (PPC /PPF)
a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology
Ability or capacity of a good or service to be useful and give satisfaction to someone.
the study of how households and firms make decisions and how they interact in markets
the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth
The part of economics involving value judgments about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics.
the analysis of facts or data to establish scientific generalizations about economic behavior
an economic system directed by government agencies
Free market economy
an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets
the ability of the economy to increase the production of goods and services
The improvement of living standards by economic growth.
A general and progressive increase in prices
development that meets the needs of the present without compromising the ability of future generations to meet their own needs