Chapters 31,32,33 Flashcards
What is economics?
Economics is a social science that studies now people with limited resources make choices in order to satisfy their needs and wants. These people include individuals organisations and governments.
What are economic resources
Economic resources are factors or in puts used to produce and distribute goods, services and wealth
What does scarce mean
Limited in supply
What is a need
A need is something we simply can’t do without.it is essential for our survival or plays A very important part in our daily lives, for example food and clothing
What is a want
A want is something we would really like to have.it may in prove our quality of life but its not essential for example a mobile or a holiday
What’s a rational choice
A rational choice is one where the expected gains outweigh the expected losses
What is utility
Utility is when choosing between two or more alternativeswe will chose the one that will provide us with the greatest benefit or satisfaction from our limited resources
What are the four factors of production
Land, labours,capital , enterprise
What are the factors of production
The economic resources needed to produce goods and service services
What’s the public sector
Is the part of economy is owed and controlled by the government
What’s the private sector
Refers to business owed by private individis
