Paper 1 Micro Economics Concepts Flashcards

Front

Scarcity

Back

where there are unlimited wants and finite resources, leading to the need to make choices

Front

Wants

Back

The desire for goods and services

Front

Opportunity cost

Back

the next best alternative given up when a choice is made

Front

Production possibility curve

Back

shows the combination of goods that can be produced with all available resources and the maximum productive potential of an economy.

Front

Demand

Back

The quantity of goods/services consumers are willing and able to buy at a given price

Front

Demand curve

Back

shows how much of a good will be purchased at different prices

Front

Substitute

Back

goods which are used as an alternative to another good

Front

Supply

Back

The quantity of goods/services producers are willing and able to buy at a given price

Front

Producer

Back

A person/company/country that supplies goods and services

Front

Equilibrium price

Back

Price at which the quantity supplied equals the quantity demanded.