The economics problem (OCR A-Level Economics): Flashcards
📚Flashcards
Practise the cards
12 cards from this deck
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Practise the cards
12 cards from this deck
Economic goods
Economic goods
Goods with opportunity cost & scarcity
Free goods
Free goods
Goods with 0 opportunity cost & no scarcity
Positive statement
Positive statement
Objective, factual statement supported by evidence
Normative statement
Normative statement
Subjective, value-based judgement/opinion
Scarcity
Scarcity
Limited resources cannot satisfy unlimited wants
Basic economic problem
Basic economic problem
Scarcity means choices must be made on allocation
Opportunity cost
Opportunity cost
Next best alternative foregone when choice is made
Four categories of resources (CELL)
Four categories of resources (CELL)
Capital, Enterprise, Land, Labour
Capital (factor of production)
Capital (factor of production)
Human-made inputs e.g. machines, buildings
Enterprise (factor of production)
Enterprise (factor of production)
Entrepreneurial ability organising factors e.g. CEOs
Land (factor of production)
Land (factor of production)
Natural resources e.g. ores, oil, trees
Labour (factor of production)
Labour (factor of production)
Human workers/effort e.g. employees