Master the essential vocabulary and core concepts for the IBDP Economics syllabus, including scarcity, market dynamics, and macroeconomic indicators.
20 cards
Front
Define **Scarcity**.
Back
Scarcity is the fundamental economic problem where human wants and needs are infinite, but the resources available to satisfy them are finite. It forces economic agents to make choices.
Front
Define **Opportunity Cost**.
Back
Opportunity cost is the value of the next best alternative foregone when a decision is made. It applies to consumers, producers, and governments.
Front
What are **Factors of Production**?
Back
The resources used to produce goods and services. The four main categories are Land (natural resources), Labor (human effort), Capital (machinery/tools), and Entrepreneurship (organization/risk-taking).
Front
Define **Ceteris Paribus**.
Back
A Latin phrase meaning 'all other things being equal' or 'holding other factors constant'. It is used in economic modeling to isolate the relationship between two variables.
Front
What is **Rational Choice**?
Back
Rational choice is the assumption that economic agents (consumers and producers) act logically to achieve their objectives, such as maximizing utility (satisfaction) or profit, given their constraints.
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