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| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Scarcity | Fundamental economic problem | Limited resources, unlimited wants |
| Choice | Necessary due to scarcity | Allocating resources between competing uses |
| Opportunity Cost | Cost of the next best alternative foregone | Buying a video game instead of two books |
| Scale of Preference | Prioritizing wants | Influenced by culture, age, life experiences |
| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Economics | Study of resource allocation | Divided into microeconomics and macroeconomics |
| Microeconomics | Study of individual markets | Consumer behavior, firm decisions |
| Macroeconomics | Study of the economy as a whole | National income, unemployment, inflation |
| Positive Statements | Objective and fact-based | "A fall in supply leads to an increase in price" |
| Normative Statements | Subjective and value-based | "Supply should lead to an increase in price" |
| Ceteris Paribus | "Other things remain equal" | Simplifying economic analysis |
| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Land | Natural resources | Mineral deposits, rivers, climate |
| Labor | Human resource | Population size, training, education |
| Capital | Physical resource made by humans | Factories, machinery, infrastructure |
| Enterprise | Organizing production and taking risks | Richard Branson, Jeff Bezos, Bill Gates |
| Specialization | Concentrating on producing specific goods | Increased efficiency and productivity |
| Division of Labor | Splitting production into individual tasks | Garment factory worker specializing in one part |
| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Market Economy | Decisions taken through the market mechanism | United States, Hong Kong |
| Planned Economy | Resources state-owned and allocated by a central body | Cuba, North Korea |
| Mixed Economy | Market forces and government involved | UK, US |
| Production Possibility Curve (PPC) | Maximum combinations of two commodities | Shifts outward with economic growth |
| Private Goods | Exclusively owned, consumption by one prevents consumption by others | Food, clothing |
| Public Goods | Collectively owned, non-excludable, non-rival | National defense, streetlights |
| Merit Goods | Positive side effects | Vaccination, education |
| Demerit Goods | Adverse side effects | Junk food, cigarettes |
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