VCE Economics - Unit 1 AOS 1 Terminology

Transitioning a publicly offered good or service to the private sector

Human-made resources used to produce goods and services

Something that induces an economic agent, whether a consumer or producer to act

Resources made by nature

The value of the next best alternative that is foregone whenever a choice is made

Individuals and organisations who make decisions in the market

Maximising output while minimising input resources

The study of the overall economy

The study of individual economic units

How quickly resources can be reallocated when needs and wants shift

Involves value judgements about what 'should be' in the economy

When a third party is affected by a transaction between two or more parties

The concept that resources are limited compared to human needs and wants

Deals with objective and positive statements about economic phenomena ('what is')

The act of giving something up in order to gain something else

An economic system where the government owns the resources but the market drives choices around resource allocation

There is an appropriate allocation of resources between current and future consumption

An economic system where the government both owns the resources and makes decisions around resource allocation

An economic system where resources are allocated based on the forces of supply and demand and are privately owned

An economic system where resources are privately owned and decisions about resource allocation are made by the government

Human effort used to produce goods and services

The optimal distribution of goods in an economy that meets the needs and wants of society

A tax on imports

An individual's or nation's access to goods and services

How much output can be produced with a given set of inputs

Refers to quality of life factors