Economics - key terms

Economics - key terms (24 Cards)
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1	A production posibility diagram	Shows the maximum possible output combinations of 2 goods or services the economy can achieve when all resources are efficiently used.
2	Capital good	Goods that make consumer goods or services
3	Capitalism	The concept that individuals should have private control over industry/land/capitial.
4	Command economy	The government largely determines what is produced and in what amount.
5	Consumer good	Goods that satisfy the needs and wants of people directly
6	Deregulation	The reduction or elimination of government power in a particular industry.
7	Economics	A social science that studies the production, distribution or consumption of goods or services.
8	Factors of production	The inputs available to supply goods or services to the economy. eg. land, capital, enterprise and labour.
9	Finite resource	A resource that will eventually run out.
10	Free good	Customer-satisfying goods made from free resources that don't impose an opportunity cost on society.
11	Macroeconomics	The study of the national economy.
12	Market economy	Consumers and businesses decide what they want to produce and purchase in the marketplace.
13	Marketisation/Commercialisation	The process of transforming an entire economy away from a planned economic system and toward greater market-based organization.
14	Microeconomics	The study of economics within a small firm or specific market
15	Mixed economy	Where both market forces and government determine which goods and services are produced and how they are distributed.
16	Normative statement	A subjective statement that carries value judgements.
17	Opportunity cost	The benefits forgone of the next best alternative.
18	Positive statement	An objective statement that can be tested using available evidence.
19	Privatisation	The process of transferring an enterprise or industry from the public sector to the private sector.
20	Production	The action of making or manufacturing components.
21	Renewable resource	A resource that will never run out.
22	Socialism	A concept where individuals shouldn't own land/firms/capital but the whole community should.
23	Technical process	An economic measure which seeks to explain changes in the level of economic output in terms of the level of technical progress and innovation.
24	The economic problem	The wants and needs of society are endless but the resources to satisfy these are finite.