Unit 1 - Basic Economic Ideas and Resource Allocation

Goods that are consumed by one person and not available to anyone else

A factor of production; a physical resource made by humans that aids the production of goods and services

Things that are necessary for survival, such as food

A simplified view of reality used to explain economic problem and issues

A factor of production; human resources available in an economy

Time period when all key inputs into production are variable

An economic system where most decisions are taken through the market mechanism

A Latin phrase meaning other things are unchanges; used by economists to model the effects of one change at a time

An individual who seeks out new business opportunities and is willing to take risks

A good that is thought to be desireable for consumers but which is underprovided by the market because of info failure

Scarce resource but unlimted wants; sometimes called the basic economic problem

As a factor of production, enterprise involves organising production and taking risks

Factors of production such as machinery, building and infrastructure

A small change in one varibale will lead to further small changes in other variables

Resources or inputs avaiable in an economy that are used in the production of goods and services

The cost expressed in terms of the next best alternative that is foregone when a choice is made

In the short run, a increase in a country's output and, in the long run, an increase in a country's productive potential

The maximum output that can be produced when all resources are used fully

A simple representation of the maximum level of output that an economy can achieve, given its current resource and tech

Resources that are available to be used

Where there is a change in ownership from the public to the private sector

Time period when all factors of production are variable but with a constant, such as the state of technology

A good that is non-excludable and non-rival

Good that has some but not the same full characterstics of a public good

The study of an ecnomoy or group of economies

A situation in which wants and needs are greater than the resources available

Where a manufacturing process is split into a sequence of individual tasks

A statement that is based on facts or actual evidence

Resource allocation decisions are taken by individual producers and consumer with no gov't intervention; price mechanism

Any business that hires factors of prodcution to produce goods and services

An economic system where resources are state owned and allocated by a central body

One that is making quick progress towards becoming a high-income economy

That part of an economy under government ownership

Where it is possible to stop someone from consuming a good or service

Inputs available for the production of goods and services

A situation where it is not possible to stop anyone else from using a good

Resources are scarce so individuals, firms and governments have to consider alternatives

Where consumption by one person of a good or service does not reduce consumption by someone else

That part of an economy under private ownership

Process where economies concentrate on producing those goods and services where they have an advantage over others

The goods and services that people may like to have but are not always realised

The study of an indiviudal market (households and firms)

Export-led, high growth economies in Asia

The way in which production is organised and choices are made in an economy

The value of labour to the productive potential (future growth) of an economy

Goods that are not scarce and have zero opportunity cost

Economies where income per head was $1026 and $12,375 in 2018

Good which is both non-excludable and non-rival

A situation where consumers do not have full or complete information when making decisions

An economic system where both market forces and government are involved in resource allocation decision

Time period when a firm can change at least one but not all factor inputs

What is involved in deciding whether to give up one good for another good

Countries where income per head was between $1026 and $3995 in 2018

Where consumption by one person of a good or service reduces the availability of the good or service for others

Economies where income per head was $12,376 or more in 2018

A factor of production; natural resources in an economy

Economies where income per head was $1025 or less in 2018

A statement that is based on the economist's opinion or value judgement and which cannot be proven

Someone who does not pay to use a public good

A good that is thought to be undesireable for consumers and is overprovided by the market because of info failure