1.1 Nature of economics

4. resources are finite
7. scarce resources and unlimited wants mean choices must be made about the allocation of resources
9. the skills and abilites endowed in an individual
11. a value judgement
13. where a factor of production is devoted to a specific job in the production process
14. human needs that are unlimited
15. natural resource which can reproduce
16. an increase in the capital stock
17. Theoris often expressed in mathmatical terms to make them precise
19. bought by firms, man-made resources
20. resources: land, labour, capital and enterprise
23. an increase in the productive potential of the economy
24. bought by the final consumer and used up
25. how an economy resolves the basic economic problem

1. where resources are allocated by the government
2. up of the production process into a series of small tasks where one person concentrates on one small task
3. means of exchange, measure of value, store of value, method of deferred payment
5. the rate at which capital loses value over time
6. all other factors remaining constant
8. where markets determine the allocation of resources with minimal state intervention
10. the maximum combination of two goods that an economy can produce if all resources are fully and efficiently employed
12. a fact that can be accepted or refuted by looking at evidence
18. reosource natural resources which cannot reproduce and are finite
21. the value of the next best alternative forgone
22. where resources are allocated by the governemnt and market forces