Economics Basics

The situation in which unlimited wants exceed the limited resources available to fulfill those wants.

• Market 
• Tradeoff
• Scarcity 
• Equity 

The highest-valued alternative that must be given up to engage in an activity.

• Scarcity 
• Factors of Production 
• Innovation
• Opportunity Cost 

There are 4 _______________. They are land, labour, capital and entrepreneurship.

• Factor of Production 
• Market Economy 
• Profit 
• Economics 

A group of buyers and sellers which come together to trade

• Trade 
• Market 
• Macroeconomics
• Economic Model 

Economic statements that explain economic facts i.e. average income in the UAE is AED 26,000 per month.

• Positive Statement 
• Normative Statement 
• Equity 
• Scarcity 

An economy in which the government decides how ALL economic resources will be allocated i.e. North Korea

• Market Economy 
• Mixed Economy 
• Centrally Planned Economy 
• Entrepreneur 

Man-made resources used in the production process i.e. machines in a factory.

• Labour
• Capital
• Household
• Revenue 

Income from sales (also known as revenue), minus the costs of running the business.

• Trade-off
• Economic Model
• Factor of Production 
• Profit

Organizing land, labour and capital (factors of production), in the production of goods or services is called  

• Entrepreneurship 
• Mixed Economy 
• Profit 
• Planned Economy 

_______________is the idea that because of scarcity, producing more of one good or service means producing less of another good or service. 

• Scarcity 
• Market Structure 
• Trade-off 
• Economics