What is the ceteris paribus assumption?

Define scarcity

What are trade-offs and choices?

Explain the cost benefit principle

Explain the 'marginal' idea

What do rational decision-makers do?

What do people usually aim to do with their welfare?

How do people maximise their welfare?

What are the effects of incomplete information on welfare?

Define Opportunity Cost

How does a free market economy work?

Define Rationing

How does market price link with rationing?

What are problems with rationing? (2)

What are options for rationing resources? (8)

What are the four main factors of production?

What is land?

What is labour?

What is K?

What is fixed K? (5)

What is working K?

What is enterprise?

What is an entrepreneur?

What are non-renewable resources?

What are renewable resources?

What are free goods?

What does a PPF show?

What does a PPF look like and how do the points work?

The points on a PPF inside the curve are?

The points beyond the PPF are?

How would a country attain those points? (3)

What is the effect of producing more of both goods?

What does reallocating scarce resources from one product to another involve?

When will a PPF be a straight line?

When will the PPF shift outwards?

When will a PPF shift inwards? (4)

What is resource depreciation?

What is resource depletion?

What are positive statements?

What is an example of positive statement?

What are normative statements?

What is an example of a normative statement?

What is specialisation?

What are some possible gains of specialisation? (3)

What is the division of labour?

What are some limitations of division of labour? (4)

What does factor immobility cause?

What are the two types of factor immobility?

When does occupational immobility occur?

When and why do people experience occupational immobility?

When does geographical immobility occur?

What are some causes of geographical unemployment? (5)

What does factor immobility cause?

What are policies to improve occupational immobility? (2)

What are policies to improve geographical immobility? (3)