Core Concepts Flashcards
1
Q
what is economics
A
how to allocate scarce resources to satisfy unlimited wants
2
Q
what is scarcity
A
a condition caused by wants exceeding what can be produced with limited resources
3
Q
what is opportunity cost
A
the value of the best alternative that’s given up because a choice was made (what you forego when making a decision)
4
Q
name the 5 limited resources and describe them
(input)
A
natural resources = land
human resources = physical labour
human capital = intellectual work
physical capital = tools, machinery, buildings
entrepreneurship = business people with ideas
5
Q
what is a market
A
a meeting place for buyers and sellers to exchange goods/services
