1. Scarcity Flashcards

1
Q

What is a resource?

A

Something that can be used and is scarce in supply. In every country, decisions have to be made on how to best allocate resources to satisfy needs and wants

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2
Q

What are needs?

A

Things people MUST have in order to sustain life

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3
Q

What are wants?

A

Things people would like to have, but are not necessary for survival

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4
Q

What is the problem with wants?

A

They are unlimited

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5
Q

What is scarcity?

A

Limited means against unlimited wants

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6
Q

What are some limited means? (3)

A

Time
Money
Skill

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7
Q

What is opportunity cost?

A

The next best alternative forgone

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8
Q

What is a producer?

A

Any person or organisation that uses resources to create goods or services

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9
Q

What is a consumer?

A

Individuals or households that use goods or services

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10
Q

What is a good?

A

Commodities with a physical presence

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11
Q

What is a free good?

A

A good that is extremely plentiful, meaning no market can be established.

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12
Q

What is an Economic good?

A

Goods that are scarce and have a cost

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13
Q

What is a Consumer good?

A

Goods made for consumption

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14
Q

What is a Capital good?

A

Man-made goods used in the production of other goods and services

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15
Q

What is a Service?

A

Something someone else does for you

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