IB Economics HL Terms
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8 terms
Terms | Definitions |
|---|---|
 Normal Goods | Goods that consumers demand more of when their incomes increase. As income rises, the demand curve for this good will shift to the right. |
| Scarcity | The condition that results from limited resources combined with unlimited wants. |
| Choice | The right or ability to make, or possibility of making, such a selection. |
| Opportunity Cost | Next best alternative foregone when an economic decision is made. What you give up in order to have something else. |
| Factors of Production | The resources that allow an economy to produce its output. Land, labour, capital and entrepreneurship. |
| Land | All natural resources used by an economy in order for it to produce output. |
| Labour | The physical and mental contribution of the existing workforce to production. The human factor. |
| Capital | The factor of production that comes from investment in manufactured resources that are used to produce goods and services in the economy and education or improved health care. |
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