Basic Economic Concepts

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

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

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

Air in an unpolluted environment.

Underutilisation of resources or unemployment.

An economic system combining elements of market and planned economies.

Land, labour, capital, and entrepreneurship.

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

Increasing opportunity cost as more of a good is produced.

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

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

The situation where unlimited wants exceed limited resources.

Actual growth is movement towards the PPC; potential growth is an outward shift of the PPC.

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

Through centralised government decision-making.

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

An unattainable combination of goods with current resources and technology.

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

Microeconomics and macroeconomics.