"The previous price that the person paid for the product, or perhaps the first price at which they were offered for the product, acts as an (a)   and affects their consumption decisions in the future"

___________ ____________ challenges the assumption of pure rationality in our decisions and shows that an individual’s economic decisions may be biased

(a)  

(a)   : A systematic, non-random error in thinking

___________ ___________ : The idea that the cognitive, decision-making capacity of humans cannot be fully rational because of a number of limits that we face

(a)  

Capital: (a)  

Central purpose of economic activity: The production of goods and services to satisfy (a)  

(a)   : A scenario in which the environment in which someone must make a decision has been carefully designed in order to try and influence that decision

Default choice: The default choice or default option is the option that a consumer “selects” if he or she _____ _____________

(a)  

Economic growth: In the long-run can be defined as an expansion in the productive capacity of the economy, in the short-run an increase in ___________ __________ and real GDP

(a)  

The basic economic problem: A situation in which there are limited resources to meet ___________ ______

(a)  

Economic resources / factors of production: Resources used in the production process; inputs into production, including (a)   , capital, land and entrepreneurship

(a)   : Choices can be worded in a way that highlights the positive or negative aspects of the same decision, leading to changes in their relative attractiveness

(a)   : Tangible things that can be bought or sold and finally consumed

Heuristics: _____ ___ _______ that simplify decisions and represent a process of substituting a difficult question with an easier one

(a)  

(a)   : Something that motivates or encourages someone to do something

Labour: The __________ ____ _________ of human resources / human capital input into the production process

(a)  

Land: _________ _________ in an economy

(a)  

Loss (a)   : People’s tendency to prefer avoiding losses to acquiring equivalent gains

(a)   utility: The additional utility gained from consuming an extra unit of a good or service

(a)   : The branch of economics that studies behaviour and economic decisions made in individual households, firms and markets

(a)   statement: A value judgment about ‘what ought to be’ which cannot be tested

Opportunity cost: The cost of a decision in terms of the benefits of the ____ _____ _________ __________

(a)  

An allocation of resources is said to be a (a)   optimum if no reallocation of resources can make an individual better off without making some other individual worse off

(a)   statement: A statement of fact about ‘what is’ which can be tested

______________ _____________ _____________ : A curve showing the maximum combinations of goods or services that can be produced in a set period of time given available resources and the state of technology (if all resources are efficiently employed)

(a)  

Property rights: Property rights confer (a)   control or ownership of a good

Provider of amenities: The environment provides direct (a)   (satisfaction / welfare) to people

Provider of resources: The environment provides inputs for the production of goods and services, this includes energy (from renewable or non-renewable sources) and ____ ___________

(a)  

Rationality: Rational consumers wish to maximise their (a)   from consumption by correctly choosing how to spend their limited income

Services: (a)   activities provided by government, individuals and businesses

(a)   : Meeting the needs of the present without compromising future generations’ ability to meet their needs (Brundtland)

A ______ ____ involves a sacrifice that must be made to obtain a certain product, service or experience, rather than others that could be made or obtained using the same required resources

(a)  

Utility: The (a)   derived from consuming a good or service