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    1.1 Section - All Definitions

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    savemyexams2009

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    1.1 Section - All Definitions

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    savemyexams2009
    5 views1 page

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    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
    5 views1 page

    1.1 Section - All Definitions

    Uploaded by

    savemyexams2009

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Definitions complied by CA Pushpendra Bansal – 9828727678

    1. Wants - desires for goods and services


    2. Resources - factors used to produce goods and services
    3. The economic problem - unlimited wants exceeding finite resources
    4. Scarcity - a situation where there is not enough to satisfy everyone's wants (on grounds of unlimited wants exceeding
    finite resources)
    5. Economic good - a product which requires resources to produce it and therefore has an opportunity cost
    6. Free good - a product which does not require any resources to make it and so does not have an opportunity cost
    7. Capital/Capital goods - human-made goods used in production
    8. Consumer goods - goods and services purchased by households for their own satisfaction
    9. Entrepreneur - a person who bears the risks and makes the key decisions in a business
    10. Occupationally mobile - capable of changing use
    11. Geographically mobile - capable of moving from one location to another location
    12. Mobility of labour - the ability of labour to change where it works or in which occupation
    13. Mobility of capital - the ability to change where capital is used or in which occupation
    14. Mobility of enterprise - the ability to change where enterprise is used or in which occupation
    15. Productivity - the output per unit of factor
    16. Output - goods and services produced by the factors of production
    17. Investment - spending on capital goods
    18. Gross investment - total spending on capital goods
    19. Depreciation (capital consumption) - the value of capital goods that have worn out or become obsolete
    20. Net investment - gross investment minus depreciation 22
    21. Opportunity cost - the next best alternative forgone while making an economic decision
    22. Production possibility curve - a curve that shows the maximum output of two types of products and combination
    of those products that can be produced with existing resources and technology

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