Basic Economic Concepts

An economic system combining elements of market and planned economies.

Land, labour, capital, and entrepreneurship.

Air in an unpolluted environment.

Increasing opportunity cost as more of a good is produced.

Underutilisation of resources or unemployment.

Through the forces of supply and demand with minimal government intervention.

The maximum possible output combinations of two goods given available resources and technology.

Sustainability requires managing scarce resources so future generations can meet their needs.

The situation where unlimited wants exceed limited resources.

It studies human behaviour in relation to the allocation of scarce resources to satisfy unlimited wants.

Resources are fully employed and used efficiently.

What to produce, how to produce, and for whom to produce.

The value of the next best alternative foregone when making a choice.

An increase in resources, better technology, or improved productivity.

Scarcity, choice, efficiency, equity, economic well-being, sustainability, change, interdependence, intervention.

Microeconomics and macroeconomics.

An unattainable combination of goods with current resources and technology.

The concept of opportunity cost as more of one good is produced and less of another.

Through centralised government decision-making.