economics revision

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PPF
This shows the maximum output of an economy producing 2 goods or services when all resources are fully and efficiently used.
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Opportunity Cost
This is the next best alternative foregone.
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Positive Statement
This is a statement that can be checked against facts and figures and so confirmed as true or false
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Normative Statement
This is a value judgement and cannot be tested as true or false.
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Specialisation
This is when an individual, firm or even a country concentrate on the production of a particular good or service.
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Division of Labour
This is when a production process is divided into clear separate tasks, where labour is assigned to these tasks.
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P.E.D Price Elasticity of Demand
This measures the responsiveness of quantity demanded following a change in price
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Y.E.D Income Elasticity of Demand
This measures the responsiveness of quantity demanded following a change in income
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X.E.D Cross Elasticity of Demand
This measures the responsiveness of quantity demanded in good B, following the change in price of good A
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P.E.S Price Elasticity of Supply
This measures the responsiveness of quantity supplied following a change in the price.
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Elastic Demand
This is when a change in price brings about a more than proportionate change in quantity demanded.
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Inelastic Demand
This is when a change in price brings about a less than proportionate change in quantity demanded
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Derived Demand
This is when demand for one good/service comes from the demand for another such as labour.
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Composite Demand
This is when a good is demanded for more than one purpose
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Normal Good
This is a good whose demand rises as real income rises, represented by a + YED
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Inferior Good
This is a good whose demand falls as income real rises, represented by a - YED
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Inferior Good
This is a good whose demand falls as income real rises, represented by a - YED
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Other cards in this set

Card 2

Front

This is the next best alternative foregone.

Back

Opportunity Cost

Card 3

Front

This is a statement that can be checked against facts and figures and so confirmed as true or false

Back

Preview of the back of card 3

Card 4

Front

This is a value judgement and cannot be tested as true or false.

Back

Preview of the back of card 4

Card 5

Front

This is when an individual, firm or even a country concentrate on the production of a particular good or service.

Back

Preview of the back of card 5
View more cards

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