Read full document

definitions

  • By
  • September 2013
  • 14152 Words
  • 12 Views
Page 1 of 47
Definitions;
Basic economic problem –
Capital capital goods, or real capital are those already-produced durable goods that are used in production of goods or services. Command economy – economy where supply and price are regulated by the government rather than market forces Division of labour - Division of labour is the specialization of cooperative labour in specific, circumscribed tasks and like roles Enterprise- simply another name for a business.

Free market economy - is an economy in which decisions regarding investment, production and distribution are based on supply and demand[1] and the prices of goods and services are determined in a free price system Labour – is the physical work or effort done by humans in a business Land – check book for definition

Mixed economy – an economic system combining both private and public enterprises. Opportunity cost – when you have scarce resources and you have to make a choice of 2 alternatives, the one you do not choose is the opportunity cost. PPF - A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.). Price mechanism - The price mechanism is a term used to describe the means by which the many millions of decisions taken each day by consumers and businesses interact to determine the allocation of scarce resources between competing uses. This is the essence of economics!

Transition economy - transitional economy is an economy which is changing from a centrally planned economy to a free market

Definitions;
Basic economic problem –
Capital capital goods, or real capital are those already-produced durable goods that are used in production of goods or services. Command economy – economy where supply and price are regulated by the government rather than market forces Division of labour - Division of labour is the specialization of cooperative labour in specific, circumscribed tasks and like roles Enterprise- simply another name...