Section 1 social science a science (the pursuit of systematic and formulated knowledge) that is applied to human behaviour economics the study of how people use their limited resources in an attempt to satisfy unlimited wants microeconomics the economics of individual parts or sectors of a national economy macroeconomics the study of features of national economies growth an increase the quantity that an economy is able to produce development an improvement in the living standards of the average person in an economy sustainable development economic development for one generation that will not impact negatively on the living standards of the next generation utility the satisfaction derived from the use of a good or service opportunity cost the cost of an economic decision in terms of the next best alternative foregone production possibility curves a curve showing the maximum potential output of an economy that produces only 2 goods, with all available resources and best technology used to make either good market economy an economy where resource allocation is determined mainly by market forces of demand and supply

Section 2 monopolistic competition a market in which there are many buyers and many sellers, with very low barriers to entry and a degree of product differentiation oligopoly an industry where there are a few large firms which take up majority of market share, significant barriers to entry and a very low degree of product differentiation demand the quantity of a product than buyers are willing and able to buy at a given price per unit time supply the quantity of a product suppliers are willing and able to supply at each price per unit time maximum price a price ceiling (market restriction not allowing price of product to rise above it) imposed by the government and set below the equilibrium price / [diagram] price elasticity of demand the