Chapter 1 Flashcards
What Economics is all about
What is Economics ?
Applying scarce resources in order to satisfy our unlimited wants
What is opportunity cost of a choice?
The value to the decision maker of the best alternative that could have been chosen but was not chosen
Why is economics a social science ?
Because it studies the behaviour of human beings, both individually and as groups
What is Microeconomics ?
The part of economics that focuses on the individual parts of economics
What is macroeconomics?
The part of economics that is concerned with the economy as a whole
What are consumer goods ?
Goods that are used or consumed by individuals or households to satisfy wants
What are capital goods ?
Goods that are used in the production of other goods
What are the different categories of consumer goods?
1) Non-durable goods: Goods that can only be used once
2) Semi-durable goods: Goods that can be used more than once but last for a limited period
3) Durable goods: Goods that last for a number of years
What are firm goods ?
Goods that are used or consumed by individuals, households and firms
What are intermediate goods ?
Goods that are purchased to be used as inputs in producing other goods
What are private goods ?
a good that is consumed by individuals or households
What is a public good ?
A good that is used by the community or society at large
What is an economic good ?
A good that is produced at a cost from scarce resources
What is a free good?
A good that is not scarce and therefore has no price
What are homogenous goods?
Goods that are all exactly alike
