front 1 Opportunity cost | back 1 The value of the next best alternative forgone |
front 2 Production possibility curve | back 2 A graph to show the maximum that can be produced from two products and opportunity cost is the slope |
front 3 Occupational mobility | back 3 The ability of factors of production to move from one use to anther |
front 4 Geographical mobility | back 4 The ability of factors of production to move from one area to anther |
front 5 Scarcity | back 5 A situation where there is not enough to satisfy everyone’s wants |
front 6 The economic problem | back 6 Unlimited wants exceed scarce resources |
front 7 Factors of production | back 7 The economic resources of capital, enterprise, labour, and land |
front 8 Land | back 8 Gifts of nature available for production |
front 9 Labour | back 9 All human effort mental and physical involved in producing goods and services |
front 10 Capital | back 10 Human made goods used in production |
front 11 Enterprise | back 11 Risk bearing and decision making in business |
front 12 Investment | back 12 Spending on capital goods |
front 13 Depreciation | back 13 The value of replacing capital |
front 14 Productivity | back 14 Output per worker hour |
front 15 Economic good | back 15 A product which requires resources to produce it and therefore has an opportunity cost |
front 16 Free good | back 16 A product which does not require resources to produce it and therefore has no opportunity cost |
front 17 A planned economy | back 17 An economy where the government makes the crucial decisions, land and capital are state-owned and resources are allocated by directives |
front 18 A market economy | back 18 An economy where consumers determine what is produced, resources are allocated by the price mechanism and land and capital are privately owned |
front 19 A mix economy | back 19 An economy in which both the private and public sectors play an important role |