front 1 Wants | back 1 desires for goods and services |
front 2 Resources | back 2 factors used to produce goods and services |
front 3 The economic problem | back 3 unlimited wants exceeding finite resources |
front 4 Scarcity | back 4 a situation where there is not enough to satisfy everyone's wants |
front 5 Economic good | back 5 a product which requires resources to produce it and therefore has an opportunity cost |
front 6 Free good | back 6 a product which does not require any resources to make it and so does not have an opportunity cost |
front 7 Capital/Capital goods | back 7 human-made goods used in production |
front 8 Consumer goods | back 8 goods and services purchased by households for their own satisfaction |
front 9 Entrepreneur | back 9 a person who bears the risks and makes the key decisions in a business |
front 10 Occupationally mobile | back 10 capable of changing use |
front 11 Geographically mobile | back 11 capable of moving from one location to another location |
front 12 Mobility of labour | back 12 the ability of labour to change where it works or in which occupation |
front 13 Mobility of capital | back 13 the ability to change where capital is used or in which occupation |
front 14 Mobility of enterprise | back 14 the ability to change where enterprise is used or in which occupation |
front 15 Labour force | back 15 people in work and those actively seeking work |
front 16 Productivity | back 16 the output per factor of production in an hour |
front 17 Output | back 17 goods and services produced by the factors of production |
front 18 Investment | back 18 spending on capital goods |
front 19 Gross investment | back 19 total spending on capital goods |
front 20 Depreciation (capital consumption) | back 20 the value of capital goods that have worn out or become obsolete |
front 21 Net investment | back 21 gross investment minus depreciation |
front 22 Negative net investment | back 22 a reduction in the number of capital goods caused by some obsolete and worn-out capital goods not being replaced |
front 23 Opportunity cost | back 23 the next best alternative forgone while making an economic decision Production possibility curve- a curve that shows the maximum output of two types of products and combination of those products that can be produced with existing resources and technology |