EXPLANATION VIDEO Exam Practice (With Worked Answers) (7 OF 7) Part 2 скачать в хорошем качестве

EXPLANATION VIDEO Exam Practice (With Worked Answers) (7 OF 7) Part 2

Free notes, consults & tutoring: https://sites.google.com/view/starked... Economics is the study of how individuals, firms and governments make decisions when resources are limited but wants are unlimited. This gives rise to scarcity, which forces societies to make choices, and every choice involves an opportunity cost, defined as the value of the next best alternative forgone. To allocate scarce resources, all economies must decide what and how much to produce, how to produce, and for whom to produce, using the factors of production (land, labour, capital and entrepreneurship). Decisions are made within different economic systems such as command, market and mixed economies, and economic agents are assumed to be rational, making decisions using marginal analysis where the optimal choice occurs when marginal benefit equals marginal cost. These ideas can be illustrated using the production possibility curve (PPC), which shows scarcity, choice and opportunity cost, as well as actual and potential economic growth.