0455 IGCSE Economic Concepts Flashcards

Front

What is the basic economic problem?

Back

Unlimited wants exceeding finite resources.

Front

Define scarcity.

Back

A situation where there is not enough to satisfy everyone's wants.

Front

What is an economic good?

Back

A product which requires resources to produce it and therefore has an opportunity cost.

Front

What is a free good?

Back

A product which does not require any resources to make it and so does not have an opportunity cost.

Front

What are capital goods?

Back

Human-made goods used in production.

Front

What are consumer goods?

Back

Goods and services purchased by households for their own satisfaction.

Front

Who is an entrepreneur?

Back

A person who bears the risks and makes the key decisions in a business.

Front

What does occupationally mobile mean?

Back

Capable of changing use.

Front

What is mobility of labour?

Back

The ability of labour to change where it works or in which occupation.

Front

Define productivity.

Back

The output per factor of production in an hour.