Economic Flashcards

1
Q

Finite resources

A

those that have a definite fixed size or a limited quantity left have always been scarce

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2
Q

What human have struggled ?

A

humans have struggled to find a balance between scarce resources and unlimited wants.

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3
Q

Scarcity

A

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.

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4
Q

Land

A

Includes items from nature like wood, timber, coal and oil

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5
Q

Labour

A

Humans’ physical capacity and skills

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6
Q

Capital

A

Capital is the tools and equipment necessary to bring a product to market.

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7
Q

Entrepreneurship

A

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).

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8
Q

Basic economic problem

A

We live in a world of scarcity

Humans have unlimited needs and wants but limited resources

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9
Q

Needs

A

Items that are necessary for survival, such as food, water, shelter, and clothing – these are considered the basic needs of life.

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10
Q

Wants

A

Are items that are not necessary for survival, although society can sometimes pressure us into feeling like they are necessary.

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11
Q

Opportunity cost

A

The next best alternative forgone

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12
Q

Scarcity

A

Scarcity refers to the limitation of productive resources like land, labour, capital and entrepreneurship .

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13
Q

GDP

A

Gross domestic product

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14
Q

Why Economic goods are very important for the economy?

A

They are important to the economy because they add value to the country’s gross domestic product ( GDP)

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15
Q

Monetary value

A

Amount that would be paid for an asset if it were to be sold

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16
Q

What does production of economic goods requires ?

A

It requires the use of scarce resources, which have a monetary value and potential alternative uses.

Land that is used for farming have less potential uses compare to the same land but is used for school or hospital.