Resource Scarcity, Choice, and Allocation (AQA A-Level Economics): Flashcards
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Practise the cards
10 cards from this deck
Definition of scarcity
Definition of scarcity
Unlimited wants but limited resources to satisfy them
The fundamental economic problem
The fundamental economic problem
How to allocate scarce resources to maximize human welfare
What a budget constraint is
What a budget constraint is
Limit on purchases given current prices and available income
Definition of opportunity cost
Definition of opportunity cost
Value of the next best alternative that must be given up
What rational behaviour means
What rational behaviour means
Making decisions to maximize private benefit or satisfaction
'Think at the time' principle in rational decisions
'Think at the time' principle in rational decisions
Best decision with info available at time, not perfect foresight
What a non-renewable resource is
What a non-renewable resource is
Resource that cannot be replaced once extracted and used
Definition of inter-temporal choice
Definition of inter-temporal choice
Decisions affecting different time periods (now vs future)
What labour-intensive technology means
What labour-intensive technology means
Uses many workers but little capital equipment
Pattern of increasing opportunity cost
Pattern of increasing opportunity cost
More of one good made means more of alternative sacrificed