Economic Flashcards
Finite resources
those that have a definite fixed size or a limited quantity left have always been scarce
What human have struggled ?
humans have struggled to find a balance between scarce resources and unlimited wants.
Scarcity
of unlimited wants and limited resources. Scarcity requires people to make choices and decisions about how to allocate resources efficiently to satisfy basic needs and as many wants as possible.
Land
Includes items from nature like wood, timber, coal and oil
Labour
Humans’ physical capacity and skills
Capital
Capital is the tools and equipment necessary to bring a product to market.
Entrepreneurship
Combination of these resources to package them in a manner that is valuable to consumers (people who buy goods and services for their own use).
Basic economic problem
We live in a world of scarcity
Humans have unlimited needs and wants but limited resources
Needs
Items that are necessary for survival, such as food, water, shelter, and clothing – these are considered the basic needs of life.
Wants
Are items that are not necessary for survival, although society can sometimes pressure us into feeling like they are necessary.
Opportunity cost
The next best alternative forgone
Scarcity
Scarcity refers to the limitation of productive resources like land, labour, capital and entrepreneurship .
GDP
Gross domestic product
Why Economic goods are very important for the economy?
They are important to the economy because they add value to the country’s gross domestic product ( GDP)
Monetary value
Amount that would be paid for an asset if it were to be sold
