Scarcity and Choice (Leaving Cert Economics): Flashcards
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15 cards from this deck
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Practise the cards
15 cards from this deck
Scarcity
Scarcity
Unlimited wants but limited resources
Four main economic resources
Four main economic resources
Land, Labour, Capital, Enterprise
Land as economic resource
Land as economic resource
Natural resources and physical space
Labour as economic resource
Labour as economic resource
Human effort and skills
Capital as economic resource
Capital as economic resource
Machinery, buildings, and equipment
Enterprise as economic resource
Enterprise as economic resource
Entrepreneurship and business innovation
Opportunity cost
Opportunity cost
Value of next best alternative sacrificed
Incentives in economics
Incentives in economics
Rewards or penalties influencing economic behaviour
Microeconomics focus
Microeconomics focus
Individual markets and specific decision-making units
Macroeconomics focus
Macroeconomics focus
Economy as a whole and economy-wide indicators
Specialisation
Specialisation
Focusing on producing particular goods/services efficiently
Benefit of specialisation
Benefit of specialisation
Increases productivity and total output
Risk of specialisation
Risk of specialisation
Over-dependence on specific industries or regions
Cost-benefit analysis (CBA)
Cost-benefit analysis (CBA)
Comparing expected costs against anticipated benefits
Three government economic roles
Three government economic roles
Public goods, regulation, income redistribution