1. Scarcity Flashcards
What is a resource?
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
What are needs?
Things people MUST have in order to sustain life
What are wants?
Things people would like to have, but are not necessary for survival
What is the problem with wants?
They are unlimited
What is scarcity?
Limited means against unlimited wants
What are some limited means? (3)
Time
Money
Skill
What is opportunity cost?
The next best alternative forgone
What is a producer?
Any person or organisation that uses resources to create goods or services
What is a consumer?
Individuals or households that use goods or services
What is a good?
Commodities with a physical presence
What is a free good?
A good that is extremely plentiful, meaning no market can be established.
What is an Economic good?
Goods that are scarce and have a cost
What is a Consumer good?
Goods made for consumption
What is a Capital good?
Man-made goods used in the production of other goods and services
What is a Service?
Something someone else does for you
