46382
The reasons for
individuals,
organisations and
societies having to
make choices
- economic problem= how to allocate scare resources among alternative uses
- opportunity cost=the cost of the next best alternative, which is foregone when a choice is made
- scarcity
- market economy=resources allocate by forces of demand and supply and govt has little involvement
- command economy=govt and its organisation are responsible for allocation of resources
- mixed=private and public sector allocate resources
- market economy=resources allocate by forces of demand and supply and govt has little involvement
- specialisation=concentration by a worker/workers, firm, region or
economy on a range of goods and services
- benefits
- increase output
of goods and
services when
compared to
circumstances
where each
country provides
itself with
everything it
needs
- widening range of goods available in an economy
- exchange between developed
and developing countries
- increase output
of goods and
services when
compared to
circumstances
where each
country provides
itself with
everything it
needs
- risk
- taste of
consumers
may change
- bad weather
- deindustrialisation
- taste of
consumers
may change
- benefits
- PPC
- factors of production
- land=natural resources-mixed deposits e.g. oil and coal
- labour=human resources, poor
countries have large population and
lack of well trained workforce
- entrepreneur=human capital
- capital=physical resource-anything that is manmade
by man aid for production
- land=natural resources-mixed deposits e.g. oil and coal
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