Economics: Topic 1, Year 1 Definitions

The study of scarcity.

The scientific study of human society and social relationships.

Statements that can be scientifically proven.

Statements that are matters of opinion and reflect value judgements.

A judgement based on what is deemed to be right and good.

A judgement based on the need to appeal to selected groups of people.

Tangible items that can be seen or touched and that satisfy human needs and wants, such as bread, cars and mobile phones.

Intangible items that satisfy human needs and wants, such as bus journeys, television programmes and the provision of telecommunication links.

What people require for basic human survival.

Human desires beyond the basic needs for human survival.

The provision of goods and services to satisfy needs and wants.

A type of economy where the government decides on the production of goods and services.

A type of economy in which the markets decides on the prodction of goods and services through the use of demand and supply.

A type of economy in which the goods and services are provided through the market system, except where governents choose to intervene.

Goods produced solely in order to assist production of other goods. Examples include machinery, office equipment and company vehicles. They are vital because they enable an economy to increase output in the future.

The combining of the other factors of production in order to produce goods and services. Entrepreneurs undertake this action and are motivated by profit.

All natural resources encompassing not only land, but also minerals such as coal and gold, agricultural crops and livestock.

The human effort, both physical and mental, used in the production of goods and services.

Describes the conditions in which a person, animal or plant lives or operates.

A resource that can replenish itself over time, so that new additions of the resource can match or exceed levels of use of that resource.

A resource that cannot replenish itself over time, so that once it is used it is no longer available in its original form.

The next best alternative that was given up when making a choice.

Shows the maximum combination of products (goods and services) that can be provided by an economy or a firm during a given period of time with the resources available.

Resources are being used to produce the goods and services that consumers want to buy.

Measures how well an economy or firm uses its resources to produce outputs.