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| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Scarcity | Fundamental economic problem | Limited resources, unlimited wants |
| Choice | Allocation of scarce resources | Decisions made by individuals, firms, governments |
| Opportunity Cost | Cost of the next best alternative foregone | Buying a video game instead of two books |
| Scale of Preference | Prioritization of wants | Influenced by culture, upbringing, age |
| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Economics | Study of resource allocation | Microeconomics and Macroeconomics |
| Positive Statements | Objective, fact-based | "A fall in supply leads to a price increase" |
| Normative Statements | Subjective, value judgments | "A fall in supply should lead to a price increase" |
| Ceteris Paribus | "Other things being equal" | Simplifies economic analysis |
| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Land | Natural resources | Mineral deposits, rivers, climate |
| Labour | Human resource | Population size, training, education |
| Capital | Physical resource made by humans | Factories, machinery, infrastructure |
| Enterprise | Organizing production and taking risks | Entrepreneurs like Richard Branson |
| Concept/Event | Significance | Key Evidence |
|---|---|---|
| Market Economy | Resource allocation via price mechanism | United States, Hong Kong |
| Planned Economy | Resource allocation by central body | Cuba, North Korea |
| Mixed Economy | Combination of market and government | UK, US |
| Production Possibility Curve (PPC) | Maximum combinations of two commodities | Shifts indicate economic growth or decline |
| Public Goods | Non-excludable and non-rival | National defense, streetlights |
| Merit Goods | Positive side effects | Vaccination, education |
| Demerit Goods | Adverse side effects | Junk food, cigarettes |
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