IB Economics HL

Ceteris paribus - Answer-all other things are being held equal positive economics - Answer-matters of economics that can be proven to be right or wrong by looking at the facts normative economics - Answer-matters of economics that are based upon opinion and so are incapable of being proven to be right or wrong scarcity - Answer-the limited availability of economic resources relative to societys unlimited demand for goods and services land - Answer-the physical factor of production. It consists of natural resources labour - Answer-the human factor of production. It is the physical and mental contribution of the existing work force to production capital - Answer-the factor of production that is made by humans and is used to produce goods and services. It occurs as a result of investment entrepreneurship - Answer-the factor of production involving organizing and risk-taking opportunity cost - Answer-is the next best alternative foregone when an economic decision is made free good - Answer-goods or services which are unlimited in supply and have no opportunity cost. the have unlimited supply at market price zero economic good - Answer-a good or services which is relatively scarce and so have a price. An opportunity cost is involved if it is consumed. utility - Answer-the satisfaction or pleasure that an individual derives from the consumption of a good or service production possibility curve - Answer-shows the maximum combination of outputs that can be production by an economy in a given time period actual output - Answer-the actual production of goods and services in an economy over a given time period actual growth - Answer-occurs when previously unemployed factors are put into production. It is represented by an movement from a point within a PPC to a new point nearer to the PPC