Econ Basics Flashcards
1
Q
economic definition
A
a social science that studies allocation of scarce resources among unlimited competing wants and needs
2
Q
fundamental economics problem
A
scarcity
3
Q
want
A
things you do not need to survive, express a persons need sometimes
4
Q
need
A
things you need to survive
5
Q
opportunity cost
A
next best alternative use of a resource when one choice is made over another
6
Q
TINSTAAFL
A
there is no such thing as a free lunch - it may appear free, but nothing ever is, someone is paying somewhere
7
Q
opportunity cost formula
A
x unit / x unit = y unit / x unit
8
Q
5 roles of financial systems
A
produce info about investments monitor investments facilitate trading and risk mgmt mobilize and pool savings ease exchange of goods and services
9
Q
how does volatility help
A
crises and hardships aid infrastructure and growth through hardships
