The PPF is concave to the origin when there are constant returns to a factor.
The PPF is a curve that illustrates the maximum feasible amount of two products that an economy can produce with available resources and technology.
Normative Economics gives an opinion on what should happen, based on ideological judgment, and cannot be verified or tested.
A Planned (Command) Economy is an economic system where the government owns and distributes resources.
Entities in economics refer to individuals, groups of individuals, business organizations, or government bodies that participate in economic activities.
A Free Market Economy is an economic system where decisions regarding investment, production, and distribution are based on supply and demand, with minimal government intervention.
Choice in economics refers to the decision-making process individuals undergo to allocate limited resources among competing wants and needs.
The shape of the PPF depends on the returns to a factor, specifically showing concavity to the origin when there are diminishing returns.
The total cost of the MBA is £48,000 in tuition fees.
Government Intervention can address economic problems such as market failures, income inequality, and externalities by implementing policies aimed at correcting these issues.
Points a, b, and c represent outcomes of using all available resources, specifically 8 hours, in the production of two goods, such as Auditing and Taxation.
A mixed economy is one where the key economic questions are answered by a combination of market forces and government intervention.
A Mixed Economic System is the most common type of economy that combines elements of both Capitalism and Socialism, characterized by a primarily free market with government intervention as needed.
Resources are finite assets that need to be managed and can be identified as unique to individuals or groups.
Examples of goods and services include cars, TV sets, banking services, and telecommunication.
Capital refers to the tools, equipment, and facilities used in the production of goods and services, as well as financial resources.
In a free market, the key economic questions are answered by market forces of supply and demand.
In a planned economy, the government answers the key economic questions.
Gains from Trade refer to the benefits that countries or individuals receive from specializing in certain products and trading them, allowing consumption beyond their Production Possibility Frontier (PPF).
The resources involved in production include land, labor, capital, and entrepreneurship.
The basic economic questions are: What to produce? How to produce? For whom to produce?
Automation is significant in production as it can enhance efficiency and reduce the need for manual labor, impacting how many employees are hired.
Opportunity cost is the value of the next best alternative that is forgone when making a decision.
This refers to the decision-making process regarding the efficient distribution of products, including considerations of who should have access to a product and the level of demand for it.
Point z is unattainable as it would require more than 8 hours of study, which cannot be achieved.
Land refers to all natural resources used to produce goods and services, including raw materials and physical space.
The two products mentioned are Product A and Product B.
Spending £40 may limit Samantha's daily expenditure to £15, illustrating the impact of her financial choices on her future spending ability.
The Production Possibility Frontier (PPF) illustrates the trade-offs between two choices, in this case, the points Joel can gain from studying Auditing versus Taxation, showing the maximum points he can achieve if he allocates his time efficiently.
Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
Diminishing returns refer to the decrease in the incremental benefit gained from studying more time for a subject, indicating that after a certain point, additional time spent yields progressively smaller increases in grades.
Factors that determine how much to produce include the availability of resources, market demand, and production efficiency.
The basic economic questions are: What to produce? How to produce? For whom to produce?
Capitalism is characterized by private ownership of resources, market competition, and the profit motive.
Opportunity cost is the value of the next best alternative that is forgone when making a decision.
Economic Systems are frameworks that set the business environment and help address key economic questions regarding the production, distribution, and consumption of goods and services.
Economists have attributed most market failings to inadequate (if any) government intervention.
Economics is important because it examines how humans allocate finite resources to satisfy their unlimited desires.
All points within the shaded area of the PPF represent feasible regions for production, indicating that resources are being used efficiently.
The PPF illustrates the trade-off an economy faces, where every output on the PPF represents an efficient output, indicating that producing more of one product means producing less of another.
The Production Possibility Curve (PPC) represents the maximum possible output combinations of two goods or services that can be produced with available resources and technology, illustrating trade-offs and opportunity costs.
At its purest form, a Planned Economy represents Communism.
Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
An example is a country selling 10 units of product A abroad for 20 units of product B, allowing it to consume more than it could produce alone.
The Government can intervene in taxation by choosing to impose taxes on income or on goods sold, impacting consumer behavior and economic activity.
The types of economic resources include land, labor, capital, and entrepreneurship.
Opportunity Cost refers to the total value that one misses out on based on any decision they’ve made, representing the net benefit of making an alternative decision from the one chosen.
A mixed economy implies government intervention in the market.
Resources in the context of businesses refer to the assets and inputs that are utilized to produce goods and services.
Macroeconomics focuses on the economy as a whole, examining large-scale economic factors such as inflation and economic growth.
The key economic questions are: what is produced? how is it produced? and who is it produced for?
Opportunity Cost influences decision-making by highlighting the potential benefits that are lost when choosing one option over another.
A budget helps individuals allocate their limited resources effectively to meet their needs and wants while avoiding overspending.
The process of producing involves combining resources such as land, labor, capital, and entrepreneurship to create goods or services.
Samantha should consider the opportunity cost of spending £40 on a night out versus the benefits of saving that money for her daily budget.
Consuming outside the PPF means that through trade, a country can access a combination of goods that exceeds its own production capabilities, represented by the PPF.
Economic growth is an increase in the production of goods and services in an economy over a period of time, often measured by GDP.
The Production Possibility Curve is a graphical representation that shows the maximum possible output combinations of two goods that can be produced with available resources.
Economics studies human attitude towards allocating scarce resources to competing wants/needs.
Positive Economics involves the presentation and analysis of facts to predict future outcomes. It tells us what has happened and what would likely happen, and is based on testable theory.
Labour is the human effort, both physical and mental, used in the production of goods and services.
Opportunity Cost is the value of the next best alternative that is forgone when making a decision.
The Production Possibility Frontier (PPF) is a curve that illustrates the maximum units of output (specifically, two products) that can be produced in an economy given limited resources.
An outward shift in the PPF can be caused by an improvement in the quality or quantity of resources available, such as more training of employees, greater investment in capital goods, an increase in population size, or improvements in technology.
Labour refers to human resources, which includes the physical and mental efforts of individuals engaged in the production of goods and services.
The tuition cost for the MBA mentioned is £48,000.
Resource allocation involves distributing available resources among various uses, which is represented on the PPF by the trade-offs between different goods.
The types of economic resources include land, labor, capital, and entrepreneurship.
The basic economic questions are: What to produce? How to produce? For whom to produce?
All points within the shaded area of the Production Possibility Frontier (PPF) represent feasible regions for production.
Scarcity refers to the limited availability of resources in comparison to the infinite human wants and desires.
The PPF provides insights into possible total outputs in the economy based on different combinations of resources used to produce various products.
An outward shift of the PPF represents economic growth; it shows an increase in the maximum combinations of products the economy can produce.
The potential income from the full-time job is £40,000 per annum.
The opportunity cost of pursuing an MBA is the total cost of taking the MBA course, which includes tuition and living expenses, minus the income that could have been earned from the next best alternative, such as working full-time.
PPC stands for Production Possibility Curve, which illustrates the maximum feasible amount of two goods that can be produced with available resources and technology.
Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
Labor refers to the human effort used in the production process, which can include hiring employees and determining their roles.
Capitalism is characterized by private ownership of resources, market competition, and the profit motive.
Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
Capital refers to non-human resources that are used in the production of goods and services.
A Planned Economy, also known as Socialism, is an economic system where the government controls, owns, and distributes all economic resources, with profits and entrepreneurship being non-existent.
Textile factory workers are a specific example of labour, contributing to the production of textiles and garments in the manufacturing sector.
Stockbrokers facilitate the buying and selling of stocks and securities, playing a crucial role in the financial markets and economic transactions.
The extent of Government Intervention is determined by economic conditions, social needs, market failures, and the political climate.
Points outside the PPF indicate unattainable production levels given current resources and technology.
A Free Market Economy is an economic system where individuals own, control, and distribute all economic resources, with distribution primarily determined by demand and supply.
Entrepreneurship is the process of starting and operating a new business, typically involving risk-taking and innovation to create goods or services.
Microeconomics studies what happens in a particular market, exploring individual choices, firm choices, and the interaction between both parties.
The Production Possibility Frontier (PPF) is a graph that illustrates all possible combinations of two goods that can be produced with available resources and technology.
Scarcity refers to the limited nature of society's resources, meaning that there are not enough resources to satisfy all human wants and needs.
Opportunity Cost is the value of the next best alternative that is forgone when a choice is made, such as the lower grade in Taxation when more time is allocated to Auditing.
Opportunity cost is the value of the next best alternative that is forgone when making a decision.
Opportunity costs are the benefits that are missed or given up when choosing one alternative over another.
Government Intervention refers to the actions taken by a government to influence its economy, which can include regulations, subsidies, tariffs, and taxes.
The foregone income when pursuing an MBA instead of working full-time is £40,000.
Government Intervention in housing crises is significant as it can help stabilize the housing market, provide affordable housing, and address homelessness.
The Production Possibility Curve is a graphical representation that shows the maximum possible output combinations of two goods that can be produced with available resources.
The Opportunity Cost is the income Joel forgoes by not taking the full-time job offer of £40,000 per annum while spending £48,000 on the MBA.
Government Intervention refers to the actions taken by a government to influence its economy, which can include regulations, subsidies, tariffs, and other measures.
Entrepreneurship is the ability and willingness to combine land, labour, and capital to create and manage a business, taking on financial risks in the hope of profit.
A Free Market Economy is characterized by the allocation of resources through supply and demand.
A Mixed Economy is an economic system that combines elements of both Planned and Market Economies.
The concern of the Entrepreneur regarding 'Who to Produce for' involves identifying the target market or consumers for the produced goods or services, ensuring that they meet the needs of specific groups.
The living expenses associated with pursuing an MBA are £25,000 for rent and feeding for the year.
Producing at point Z indicates that through trade, the economy can achieve a level of production and consumption that is not possible without trading, thus illustrating the benefits of specialization and trade.
A Planned Economy is an economic system where the government makes all decisions regarding the production and distribution of goods and services.
The question of What to Produce refers to the inquiry about the type and combination of goods and/or services to be produced given limited resources.
An Economic Decision is a choice made by an individual or group regarding the allocation of resources, often involving trade-offs and opportunity costs.
Opportunity Cost refers to the value of the next best alternative that is forgone when a choice is made. In Joel's case, if he spends all 8 hours on Auditing, the opportunity cost is the 20 points he could have gained from studying Taxation.
When there are diminishing returns to a factor, the PPF is concave to the origin.
In economics, a 'curve' refers to a graphical representation or plot that illustrates relationships between different economic variables.
Economic Growth refers to the increase in the production of goods and services in an economy over a period of time, often represented by an outward expansion of the Production Possibility Frontier (PPF).
The total opportunity cost of studying for an MBA includes tuition fees (£48,000), living expenses (rent and feeding costs of £25,000), and the foregone income from not working full-time (£40,000), totaling £88,000.
An outward expansion of the PPF indicates economic growth, showing that an economy can produce more of both goods than before.
Microeconomics is the branch of economics that studies individual agents and markets, focusing on the decisions made by households and firms.
Subsidies are financial assistance provided by the government to support livestock farmers, aimed at reducing their costs and encouraging production.
The concern of the Entrepreneur regarding 'What to Produce' involves deciding which goods or services to create based on consumer demand and market needs.
The concern of the Entrepreneur regarding 'How to Produce' involves determining the methods and processes to use in the production of goods or services, including the choice of technology and labor.
Specialization allows a country to focus on producing certain products more efficiently, which can then be sold abroad for other goods, leading to increased overall consumption and economic benefits.
Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.
Points inside the PPF represent inefficient use of resources, where not all resources are being utilized to their full potential.
The Production Possibility Curve is a graphical representation that shows the maximum possible output combinations of two goods that can be produced with available resources.
The Production Possibility Frontier (PPF) is a curve that illustrates the maximum feasible amount of two goods that can be produced with available resources and technology.
A Production Possibility Frontier (PPF) is a curve that illustrates the varying amounts of two products that can be produced with a fixed amount of resources.
The types of economic resources include land, labor, capital, and entrepreneurship.
Opportunity cost is the value of the next best alternative that is forgone when making a decision.
Capitalism is characterized by private ownership of resources, market-driven economy, and minimal government intervention.
