National 5 Economics Guaranteed Success
Scarcity ️️Scarcity is the basic economic problem.
It occurs because we have unlimited wants for goods and services, due to greed.
However we have limited resources.
Resources are the factors of production.
Opportunity Cost ️️A sacrifice mad...
Scarcity ✔️✔️Scarcity is the basic economic problem.
It occurs because we have unlimited wants for goods and services, due to greed.
However we have limited resources.
Resources are the factors of production.
Opportunity Cost ✔️✔️A sacrifice made for the next best alternative.
Economic Efficiency ✔️✔️Producing goods and services that people most want, at a minimal cost.
Demand ✔️✔️Being willing and able to buy a good or service at a particular price.
Total Utililty ✔️✔️Total satisfaction from consuming all units of a good or service.
Marginal Utility ✔️✔️The extra satisfaction gained from consuming one more unit of a good or
service.
Diminishing Marginal Utility ✔️✔️A decline in the extra satisfaction we get from consuming extra units
of a good or service.
Supply ✔️✔️Being willing and able to provide a good or service at a particular price.
Market ✔️✔️It's wear buyers and sellers come together to agree a price and exchange.
Disposable Income ✔️✔️Money left over after deductions such as income tax.
Exchange Rate ✔️✔️The price of one currency in terms of another.
, Cyclical Unemployment ✔️✔️When a firm has a low economic output and varies with the business
cycle they let people go.
Frictional Unemployment ✔️✔️When people move jobs.
Technological Unemployment ✔️✔️When there are changes in the work due to technological
advances and so technology is chosen over people.
Structural Unemployment ✔️✔️When the company moves abroad.
Direct Taxation ✔️✔️Taxes which are taken from individuals and firms and payed straight to the
government.
Indirect Taxation ✔️✔️Taxes payed through an intermediary to the tax authorities.
Progressive Taxation ✔️✔️When the proportion of taxation rises as income increases.
Regressive Taxation ✔️✔️When the proportion of taxation falls as income increases.
Trade Deficit ✔️✔️Value of imports greater than the value of exports.
Trade Surplus ✔️✔️Value of exports greater than the value of imports.
Real Growth ✔️✔️Takes into account inflation.
Recession ✔️✔️2 consecutive quarters of negative economic growth.
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