The Nature of Economics: Further Exploration (Edexcel A-Level Economics A): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Scarcity
Scarcity
Resources are finite whilst human wants are unlimited
Opportunity cost
Opportunity cost
Value of the next-best alternative that must be sacrificed
Production Possibility Frontier (PPF)
Production Possibility Frontier (PPF)
Max combos of goods produced when all resources fully & efficiently used
Point inside PPF meaning
Point inside PPF meaning
Inefficiency - not using resources efficiently
Capital goods
Capital goods
Goods used as part of the production process itself
Consumer goods
Consumer goods
Products for immediate use or consumption
Division of labour
Division of labour
Production broken into stages, workers assigned to particular stages
GDP
GDP
Total value of economic activity in an economy over a period
Four functions of money
Four functions of money
Medium of exchange, store of value, unit of account, deferred payment
Mixed economy
Mixed economy
Market forces complemented by some state intervention